The year 2024 is going to end. Throughout this year, the market not only hit new highs but also faced heavy selling by FIIs. Now Macquarie Capital has presented its view on how the stock market may behave in the new year 2025.
Sandeep Bhatia, Managing Director and Head of Equity India, Macquarie Capital, says that Indian markets may see a decline of 10 percent in the first half of the calendar year 2025. He said this possible decline could be due to global factors and not domestic ones, which signals a turnaround for Indian markets.
He says that I am not a supporter of the ideology that domestic liquidity can always maintain balance in a market. This can balance the impact of disappointment in earnings. India needs to handle the Trump presidency well. This will be the most important factor for the markets in 2025. He also added that if market growth resumes, it could help balance out some of the challenges.
Both the managing director and head of India Research at Macquarie expressed concern over the high level of selling in the IPO by promoters and offers for sale by private equity. He says that at the beginning of the bull market, investors have cash and promoters have vision and at the end of the bull market, promoters have cash and investors are left with only vision.
Experts believe that consumption, which is a major driver of the Indian economy, remains weak. While the worst is probably behind us now, it will be a slow rise.
Despite the challenges, Macquarie is optimistic about some defensive sectors. He believes that our mentality is defensive. Within this defensive construct, we have positioning in the IT, Pharma, and Financial sectors.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.