India, politically stable, remains the brighter star of the firmament of emerging markets, coni its solids macroeconomic fundamental and the growth of the class of national investors who give the racing market to the rise more space to run in 2025. It underlines it Helen Keung – PORTFARIO MANAGER CLIENT OF ROBECO.
Emerging markets, India continues to shine
The post-covid Indian bull market-explains the expert-was supported by a global leader macroeconomic growth and by a sustained growth of two-digit corporate profits. Consequently, the macroeconomic stability and the continuation of a strong growth of the nominal GDP remain the basic bases for the maintenance of this bull market (the MSCI India has risen by 11.2% in 2024; the CAGR of 11% in the last four years). Despite the cyclical growth in sob – which has nervous the investors – in the second and third quarter of 2025 the Indian macroeconomic context will remain stable and will offer favorable perspectives for the Indian markets in 2025.
Prospects and investment opportunities
In the next quarters, “we see that the expenditure for infrastructures will continue to reduce the costs of logistics, with the construction of railways and highways that will be the main investment beneficiaries, an impulse to manufacturing sectors selected such as defense, electronics, L aerospace and renewable energy, as well as investments in housing construction. A reduction of the GST rates to stimulate consumption, more free trade agreements and continuous attention to the energy transition with the expansion of the sources of energy supply, including nuclear power, are the potential political measures on the side of the offer that we should expect from Government in 2025 “.
Two contrary winds
However, two emerging contrary winds could affect returns. The first It is the spectrum of the increase in US bond returns and the strengthening of the dollar. The second derives from the internal market, where a surge in equity emissions could create pressure on evaluations, deviating the liquidity of the market. If these contrary winds prove to be favorable – and so it seems while we enter 2025 – we plan that India will overperor its benchmark me for the fifth consecutive year, concludes Keung .
