CNBC’s Inside India Newsletter: Stocks have ‘bottomed out.’ Here’s What 2025 has in Store

This report is from this week’s cnbc’s “inside India” newsletter which brings you timely, Insightful news and market commentary on the emerging powerhouse and the big businesses bends Like what you see? You can subscribeHere.

The stock market in India hasn Bollywood has the best start to this year. Fears of Lofty Valuation Multiples AlongSide Earnings Expectations have LED to a STEADY DeCline for the Nifty 50,

The index has now re-entered correction territory-A 10% Fall-Since Its Its Most Recent High in Late SEPTEMBER.

In fact, year to date, the benchmark is now in the red. That’s hardly out of the order for investors, howyver. By my country, the nifty 50 turned negative by the fifth trading day of the year in service of the past 10 years.

However, this time it’s different. Many analysts Arrived into the New Year Raising Concerns about Elevated Valuations and Slowing Earnings Growth at Companies.

It’s a far cry from the bully S & p 500Which rose by more than 20% for the second year in a row.

Equity strategists at HSBC Believe The Glum Mood Gripping Markets is likely to continue.

“As Earnings Disappoint-Consensus has cut (Financial Year 2025) Growth Estimates for the nifty 50 from 15% to 5%-Investors will likely re-evaluate their positions, Limiting Markets, Limiting Market IFIC Strategists LED by Herald Van der linde in a note to clients Thursday. The Investment Bank Downgraded Indian Equites to Neutral.

Morgan Stanley Pointed Out that Stocks Last Year, For the First Time in Eight Years, Performed WorsE Than Bonds and Gold (Whoch, to Be Fair, Outpermed Most Global Markets).

,Over the long run, we think rights will lead in financial assets and gold will shine among Physical Assets, “said the investment bank’s ridham desi.

Many also believe that Indian equities, after their long slide, are now ripe for picking.

“India has bottomed out,” Wrote venugopal garre, strategist at bernstein, in a note to clients last week. Garre is expecting economy growth to pick up over the next three to six months and is Urging Investors to get ahead of the turning. “Investing ahead of the recovery is suggested,” He added. Bernsstein expects the nifty 50 to end the year at 26,500, up 13% from current levels.

Morgan Stanley Says The Tentral Government is Likely to Reduce the fiscal deficit in February when it unveils its budget, which could lower bond yields and reduce borrowing costs for Companies.

This view is echoed by equity strategists at Citi. They are expected by 6.5% this year, driven by a boost from the government’s infrastructure spending, which was in the doldrums last year.

“We have a constructive outlook on equity return the market’s More Reasonable Valuations Post Recent Corrections,” Said Citi’s Surendra Goyal in A Note to clients. The investment bank also expects nifty to end the year at 26,000 – UP 10.5%.

India’s Authorities Expect Its Economy to Grow 6.4% in Fiscal Year 2024-2025.The Indian National Statistical Office Provided Its First Advance Forecast on Tuesday, The lowest since 2020 When India’s Gross Domestic Product Shrank 5.8% became of the pandemic. The estimate is lower than the reserve bank of India’s Projection of 6.6% for the Current Fiscal Year. Here’s What Economists at HSBC and HDFC Bank Think of the estimate,

India Wants the Country’s Everseas Missions to Help Boost Exports.The Indian Commerce Ministry has Asked Indian Missions to Increase Market intelligence efforts And Identify Export Opportunities, Government Sources Told CNBC-TV18. Commercial Heads from Indian Missions in 20 Key Countries will gather for a three-day meeting, Organized by the ministry, that will focus on growing expenses.

Trump’s Second Term Will Benefit Indian Stocks, Portfolio Manager SaysUs President-Elect Donald Trump’s plans to impose heavy tarifs on china make India’s geopolitical positioning “Favorable in this Trump 2.0 Era,” According to GIB Asset Management’s Portfolio Manager Kunal Desai. “A Number of Indian Companies are Taking Advantage as Customers Look to take a dual source approach to their supply chain,” Desai said.

India is a “compounding machine.”Investor Interest in India Waned at the End of 2024 because of a pullback in Indian equities during that period. One portfolio manager, however, remains bulish on the country. The Dip in the market is a boying opportunity, he says, and Names Three Indian Stocks to Buy For 2025. (For subscribers only,

Indian stocks started the year sliding. The Nifty 50 Index Closed Around 23,500 Points, A Decline of 1.8% Since Last Week.

The Benchmark 10-Year Indian Government Bond Yield has been flat so far this year and has tradeed Around 6.76%.

On CNBC tv this week, bnp paribas’ Head of Indian Equites, Abhiram Eleswarapu, Thinks Indian Markets are going through “a soft phase” at the moment believes aTed valuations aTed. However, this “shallow correction” might be ending, and markets single Return High Single Digits From March Until the End of the year, Eleswara Pu Said.

Meanwhile, Pulkit Patn, India Industrials Analyst at Goldman Sachs, Noted That The Bank Expects India’s Cement Industry to Expand in the second half of the year, which sugges that “infrastructure spending is coming back.” Government Expenditture, Residential Real Estate and Rural Spending will form the Bulk of Such Investment, Resulting in Relatively Strong Demand for Infrastructure And related materials.