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
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
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
Muted demand in key industries
• FMCG volume up just 2%
• Auto sector hit by inventory pileups
• IT & exports slow amid global uncertainty
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
Markets at a crossroads
• Mutual funds absorbing FPI selling at high valuations
• Retail investor resilience will be tested
• Budget key to reviving confidence