The year 2024 was when the Indian equity market, often a global standout, underperformed. The year was brimming with challenges, from the market regulator's warning of frothy valuations in mid-cap and small-cap stocks to the dampener of possibly slower interest rate cuts next year by some global central banks, not to mention heightened geopolitical tensions in West Asia and Europe and yo-yoing crude oil prices. Among the other challenges were expensive valuations, sharp foreign fund outflows, disappointing corporate earnings growth, an economic slowdown, and rupee depreciation. The upshot was that equities delivered sharply lower returns. Only India's growth prospects over the medium-to-long term prevented a steep fall in equities, analysts said.