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Stock Market Outlook For 2025: Due to India's strong economy and continued infrastructure development, the stock market may continue to rise in 2025 as well. This statement was given by the expert on Monday. Deepak Ramaraju, Senior Fund Manager at Shriram AMC, said that sectors such as capital goods, technology, financial services, consumption and healthcare are expected to boom, while emerging sectors such as semiconductors, electronics and manufacturing, renewable energy and electric mobility are attracting more attention of investors. 2024 was a volatile year for the Indian stock market. This was due to the slowdown in the economy, tight liquidity conditions and delay in government spending.
government capital expenditure
Ramaraju further said that the recent CRR cut by RBI is expected to ease the liquidity situation. Government spending has also increased. These two factors are likely to improve industrial output and consumption.
The government's capital expenditure stood at Rs 4,66,545 crore till October 2024. Sectors like infrastructure, defence and railways may see improvement due to increased investment by the government in the second half of this financial year.
Possibility of reduction in interest rates
Ramaraju further elaborated that the FMCG sector has been negatively impacted due to the slowdown in urban consumption, but now it can see a recovery. This is due to improved government spending and the possibility of interest rate cuts in the first half of FY25.
The Bajaj Broking research team said that 2024 has been a remarkable year for the Indian equity markets, especially for the smallcap and midcap indices, which have outperformed remarkably.
Performance of Smallcap and Midcap
The team further said that smallcap and midcap may perform well in 2025 as well. The Nifty Smallcap index, which recently broke out of a multi-year resistance level, can reach the level of 22,700. At the same time, the Nifty Midcap index can touch the level of 67,700.
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