Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Thursday, January 2, 2024. This is Nelson John, let's get started.

All said and done, Nifty 50's returns of 9% in 2024 were about average. Expectations for the new year are understandably moderate. Abhinaba Saha writes that despite these forecasts, one sector that is likely to do well is real estate. Consumer durables will also be aided by strong demand and government support. Additionally, banks that will capitalise on the upcoming credit cycle are also likely to fare well, Abhinaba writes.

Diamonds might be forever, but their returns are certainly not. Anil Poste spoke to experts, who said that asset classes like diamonds can stagnate for years. Diamonds prices had plateaued for two decades, and are now falling — thanks to lab-grown diamonds. Unlike equities that tend to grow in value through innovation and profitability, diamonds lack a reliable resale market. Jewellers often only offer exchanges, instead of buying it back for cash. Experts caution you to treat diamonds as luxury purchases rather than dependable investments, unlike gold.

India's overburdened legal system is the recipient of many jokes. However, the tide turned in 2024: district courts disposed of more cases than were pending. This is the first time in our country's history that the number of resolved cases exceeded pending ones. Manas Pimpalkhare writes that this is the result of enhanced efficiency driven by technological integration and virtual hearings. The central government's eCourts scheme received a lot of funding and support to improve how cases are handled, Manas writes.

Indian companies are increasingly turning to qualified institutional placements (QIPs) to raise funds for capital-intensive projects, with 2024 setting a record for such fundraising. Priyamvada C reports on data from Prime Database which shows companies raised ₹1.37 trillion across 95 QIPs, significantly higher than ₹54,350 crore from 45 issues in 2023. Prominent transactions included Vedanta and Zomato, each raising ₹8,500 crore, alongside others like Adani Energy Solutions and Godrej Properties. The surge in QIPs is attributed to favorable market conditions, robust liquidity, and strong investor interest, with sectors like BFSI, real estate, and IT being particularly active.

The Indian rupee's decline against the dollar in 2024 impacted the return of FPIs, despite its relative stability compared to other global currencies. While the Sensex in rupee terms returned 8.16%, its dollar equivalent, the BSE Dollex 30, only managed a 5% gain. The rupee's modest annual fall of 2.9% was cushioned by the RBI through various market interventions. The outlook remains challenging for FPIs due to potential US policy changes under the Trump administration that may keep US bond yields high, discouraging significant investments in Indian equities and bonds. FPIs invested a mere ₹427 crore in 2024, a drastic decrease from ₹1.7 trillion in 2023. In contrast, domestic institutional investors compensated with a record ₹5.26 trillion in purchases.

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