stock market

BS EDIT: India’s stock markets: Rebound or more pain ahead?

By Business StandardPublished On Jan 30, 2025
bombay stock exchange

Market cools after stellar years

2024 saw moderate gains, but sentiment remains weak

• Nifty 50 up 8.8% but just 6% in dollar terms

• India ranked 24th globally in market returns

• Last three months negative, trend extends into 2025

Rupee

Rupee under pressure

Weakening despite RBI intervention

• Fell from 82.77 to 86.60 per dollar

• FPI outflows of Rs 1.75 trillion in four months

• Domestic buying absorbed pressure, but stocks fell

Trade

Growth concerns rise

Inflation, weak demand, and geopolitical risks hit sentiment

• Weaker rupee boosts exports, but raises import costs

• Fuel prices up amid global supply concerns

• Corporate earnings disappoint across sectors

car showroom

Consumption slowdown

Muted demand in key industries

• FMCG volume up just 2%

• Auto sector hit by inventory pileups

• IT & exports slow amid global uncertainty

Union Budget

Budget 2025-26 – A turning point?

Investor sentiment hinges on Budget outcomes

• Pro-growth policies may spark a rebound

• Lack of stimulus could deepen selling

• Retail investors face first extended losses

stock market

What lies ahead?

Markets at a crossroads

• Mutual funds absorbing FPI selling at high valuations

• Retail investor resilience will be tested

• Budget key to reviving confidence