Indiapolitically stable, the brighter star of the firmament of emerging marketswith its macroeconomic fundamental solids and the growth of the class of national investors who give the rating market more space for run in 2025. This is what emerges from the analysis Helen Keung, PORTFARIO MANAGER client of Robeco.
The Indian bull market
The post-covid Indian bull market was supported by a Macroeconomic growth leader globally and one sustained growth of corporate profits two -digit. 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 sobbing – who 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 Indian markets in 2025.
A support also came from Indian central bank which, precisely to revitalize growth, hAt the reduced interest rates of 25 points base to 6.25% from 6.50% previous.
The perspectives 2025
In the next quarters – notes the analysis – “La spending for infrastructure It will continue to reduce the costs of logistics, with the construction of railways and highways that will be the main beneficiaries of investments, an impulse to manufacturing sectors selected as defense, electronics, aerospace and renewable energyas well as investments in thehousing. 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 “.
The contrary winds
However, Two contrary winds emerging could affect returns. The first is the spectrum ofIncrease in US bond yields and the strengthening of the dollar. The second derives from the internal market, where a surge in equity emissions It could create pressure on evaluations, deviating the liquidity of the market. If these contrary winds prove to be favorable – and so it seems as we enter 2025 – we plan that India will surrender His benchmark me For the fifth year consecutive.
