• Notification Date: 02-01-2025
• Notification No: N/A

Indian Stock Market to Have a Bumpy Ride in 2025, but Hope Remains High

Indian stock markets are expected to remain volatile during 2025 as the roller-coaster ride has considerably witnessed in 2024 spilt into the New Year. The uncertainty does help persuade investors; however, guarded optimism has prevailed. The Nifty index may gain 5-16% by year-end, when it could hit levels between 25,000 and 27,500, from its closing of 23,644.80 for 2024.

Recently, a poll was conducted on 30 fund managers and brokers, in which mixed feelings were seen, with 71% indicating that the market may decline further before recovery. Fears of possible drops of 10% in the market are fueled by diverse issues, including concerns over slowing corporate earnings, the US political uncertainty, and rising bond yields.

"The market could see a bit more correction as we stabilize and find a sustainable growth path," said Vinit Sambre, who is the head of equities at DSP Mutual Fund. Other factors are a stronger dollar and the return of Donald Trump as US President, which would have a knock-on effect on global markets and place pressure on emerging economies like India.

Most investors tend to favor large-cap stocks specifically in banking, IT, and pharma. However, this may not be the case for the smaller stocks, which may be in for a tougher ride. In such a scenario, large caps appear to be safer as mid and small caps are likely to face earnings downgrades.

Investors do admit that this, too, is a bumpy ride. Hope for finding stability in India's stock market end 2025 to bring up an opportunity of growth as long as the tempests keep passing by on their route; after all, the light might be just past the storm and ahead.