Market Outlook 2025: Large-Cap Stocks Preferred by Brokerages for Consistent Growth Amid Volatility
As we wrap up 2024, the Indian stock market is seeing some ups and downs, but overall, it’s been a positive year. The Nifty 50 index has shown a 13% gain so far this year, marking its ninth year in a row of positive growth. The market hit a historic high in September, but has since corrected by 11% due to various challenges, including global tensions and the Union Budget.
Despite these challenges, investor confidence remains strong, with quick rebounds after any downturns. Foreign Institutional Investors (FIIs) have been selling off in the last two months, leading to high outflows, but the recent victories in state elections have sparked optimism in the market. Experts are looking toward 2025 with a mix of caution and hope, projecting recovery in the second half of the year.
Brokerage firms like Motilal Oswal Wealth Management and Standard Chartered have differing views on the outlook for 2025. Motilal Oswal predicts a tale of two halves, with consolidation in the first half and recovery in the second, driven by global and domestic events. Standard Chartered, on the other hand, is bullish on equities, expecting a pick-up in corporate earnings and government spending.
Overall, the market is expected to see some volatility in the coming year, but long-term prospects remain positive. With opportunities for selective stock picking and a focus on large-cap stocks and medium- to long-maturity bonds, investors can position themselves for potential gains in 2025.
