New Delhi:
American investment bank Morgan Stanley estimates that the performance of the Indian stock market in 2025 will be the best among the emerging markets of the world and the Sensex may rise by 18 percent by the end of December. In its latest note, Morgan Stanley said that by the end of December BSE Sensex is expected to have a base increase of 18 percent.
The global brokerage said that there is broad stability in India due to low trade deficit and inflation. For this reason, the income growth rate will remain at 18 to 20 percent in the next four to five years.
Because of this, Indian markets will continue to remain strong.
The strength in Indian markets is due to increase in private capital expenditure, strengthening of corporate balance sheets and structural growth in consumption. Morgan Stanley further said that focus on infrastructure spending, restructuring of GST rates, direct tax reforms, more free trade agreements, energy transition and other areas will continue to drive macro stability in India.
50 basis points cut in interest rates expected: Morgan Stanley
Morgan Stanley said that we expect a cut in interest rates by 50 basis points. Rate cut can start from February and repo rate can be cut twice in the ratio of 25-25 basis points.
RBI committed to durable liquidity
The Reserve Bank of India (RBI) is now committed to durable liquidity. According to the brokerage, regulatory strictness may reduce in the coming weeks. Morgan Stanley said in the note that initial issuances in Indian markets are running at about 1.3 percent of GDP, compared to the previous peak of 3.5 percent and are expected to increase further. The report further said that there is no recession in the US. And due to low crude oil prices, domestic growth rate may remain strong.
Sensex will increase by 8.17% and Nifty will increase by 8.8% in 2024.
Even in 2024, the Indian stock market had given positive returns and during this period Sensex and Nifty have increased by 8.17 percent and 8.8 percent.
Also read- Market Outlook 2025: Indian stock market will see a big rise in the initial months of 2025: Report