The last week of December was not good for the stock market. Last week, investors lost more than Rs 18 lakh crore. Only red was visible everywhere. Even big companies could not save themselves from this decline. Even due to this decline, the market cap of the companies listed in BSE reduced to Rs 441 lakh crore.
BSE fell 5 percent in just one week. In such a situation, the question is justified that how will the coming year be for the Indian stock market. Let us find the answer to this question on the basis of a report in this news today.
What’s in the report?
According to the latest report of Motilal Oswal Wealth Management, the Indian stock market will end 2024 on a positive note on the back of strong economic growth. At the same time, Nifty is likely to register an annual growth of 13%. This will be the ninth consecutive year that the Indian market will end the year with positive growth.
how was 2024
The report said that due to increase in corporate earnings in the first half of 2024, surge in domestic inflows and strong macroeconomics, Nifty had reached its all-time high of 26,277 in September. However, in the last two months, due to selling by foreign institutional investors (FIIs) and domestic-global economic factors, the market has fallen 11% from its highest level.
How will 2025 be for the stock market?
According to the report, market consolidation may continue in the first half of 2025. However, there is a possibility of improvement in the second half, which will be possible due to increase in rural spending, pickup in wedding season and increase in government expenditure. At the same time, a compound annual growth rate (CAGR) of 16% can be recorded in income during the financial year 2025-27.
major economic and political events
The report says that domestic and global events will have a major impact on the Indian stock market. There may be instability in the market due to the possible rate cut by the Reserve Bank of India (RBI) in February 2024 and the expectation of change in interest rates in America. Apart from this, the possibility of change in trade policy after Donald Trump takes charge as US President in January can also impact the market.
February’s Union Budget will be decisive
According to the report, the Union Budget to be presented in February 2024 will play an important role in giving direction to the market. Due to weak global economic environment and mixed domestic macroeconomic factors, the market may remain in consolidation mode in the near term.
These things will also have an impact
Motilal Oswal’s report said that the strong balance sheets of Indian companies and economic growth prospects will keep the long-term trends positive. According to the report, strong domestic demand and rising rural incomes can take the market to new heights after 2025.
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