Stock market journey of the year 2024: ups and downs and expectations for 2025
The year 2024 is about to end , and 2025 is knocking at the door. Last year, the Indian stock market saw a lot of ups and downs. If we talk about returns, then Sensex and Nifty 50 gave a profit of about 9%. At the same time, the midcap and smallcap index made investors happy by giving a return of more than 20%. Now the question is how will the market perform in 2025?
What are the experts saying?
According to market experts, India’s strong economy and infrastructure development may continue the boom in 2025. Deepak Ramaraju, Senior Fund Manager, Shriram AMC, says that sectors like capital goods, technology, financial services, consumer goods, and healthcare may perform well. Also, emerging sectors like semiconductors, electronics, manufacturing, renewable energy, and electric mobility may attract investors’ attention.
Reasons for fluctuations
There are several reasons for market volatility in 2024:
- slow pace of economy
- Tight liquidity conditions
- Delay in government spending
However, the recent CRR cut by the RBI is expected to improve liquidity. In addition, increased government spending and investment in sectors such as infrastructure, defense and railways have boosted industrial production and consumption.
Excellent performance in smallcap and midcap
Bajaj Broking’s research team says that 2024 was a great year for smallcap and midcap indices. According to their report, their performance is expected to remain good in 2025 as well.
- Nifty Smallcap index can reach the level of 22,700.
- Nifty Midcap index can touch the level of 67,700.
Hope for improvement in FMCG sector
The FMCG sector remained under pressure in 2024 due to a decline in urban consumption, but now there are signs of recovery. This is due to improved government spending and the possibility of a cut in interest rates in the first half of 2025.
| Parameters | 2024 performance | Expectations for 2025 |
|---|---|---|
| Sensex and Nifty 50 | ~9% returns | Stability and potential acceleration |
| Midcap and Smallcap | >20% returns | Smallcap: 22,700, Midcap: Can go up to 67,700 |
| Key Sectors | Midcap and smallcap better | Capital Goods, Technology, Healthcare, Financial Services |
| Emerging Areas | THAT | Semiconductors, Electronics, Renewable Energy, Electric Mobility |
| Challenges | Slowing economy, tight liquidity, delayed government spending | Improved liquidity, increased government spending |
| FMCG Sector | Decrease in urban consumption, pressure | Possibility of recovery, benefit from government spending and interest rate cuts |
| Advice for investors | Invest in midcap-smallcap, take expert advice | Focus on emerging areas, be patient |
Conclusion
If you are thinking of investing in 2025, focus on emerging sectors and midcap-smallcap indices. There will definitely be fluctuations in the market, but with the right strategy and patience, good returns can be obtained.
Disclaimer:
The information in this post is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Always do your own research and consider your personal financial situation before making any investment decisions. The stock market carries risks, and past performance is not a guarantee of future results. If you are unsure, consult a qualified financial advisor or tax professional.
