Emkay Institutional Equities has forecasted that the Nifty 50 index could reach 25,000 by December 2025, with foreign institutional investor (FII) selling expected to subside from April. The index recently closed at 22,945, signaling a potential upside as market conditions improve.
Seshadri Sen, Head of Research and Strategy at Emkay Institutional Equities, stated in a media conference that the recent sell-off in the Indian stock market was largely driven by earnings downgrades and high valuations. However, these factors are now easing, and the market is entering a more stable phase.
Key Factors Behind the Market Recovery:
1. FII Selling to Moderate:
The firm anticipates that foreign portfolio investors (FPIs) will slow down their stock offloading by April.
Stabilization in global financial markets, easing U.S. dollar strength, and valuation corrections are expected to support this trend.
2. Discretionary Spending on the Rise:
Emkay observes signs of recovery in consumer demand, with improving hiring trends in IT and BFSI sectors.
A rebound in loan growth is another positive indicator for the Indian economy.
3. Sectoral Outlook & Investment Strategies
Emkay has taken an ‘Overweight’ stance on sectors such as discretionary consumption, real estate, and healthcare.
It remains ‘Neutral’ on industrials, IT, and energy, while maintaining an ‘Underweight’ stance on financials, staples, and materials due to valuation pressures.
Top Stock Picks for 2025
Emkay’s recommended investment ideas include:
Large Caps: Lupin, Zomato, Tata Motors, IndusInd Bank
Mid Caps: Escorts, Paytm
Small Caps: Metropolis Healthcare, Stove Kraft, Quess Corp
What Lies Ahead for Indian Markets?
With a cooling U.S. Dollar Index (DXY) expected to reduce rupee depreciation concerns, analysts believe that the worst of FII selling might be over. If valuations stabilize and corporate earnings improve, the Nifty could surpass 25,000 by the end of the year, marking another strong year for Indian equities.
As global economic conditions stabilize and domestic growth remains robust, investors can look forward to a potential bull run in the Indian stock market in 2025.
Disclaimer:
The information provided in this article is for informational and educational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are advised to conduct their own research or consult with a professional financial advisor before making any investment decisions. The views expressed in this article are based on Emkay Institutional Equities' analysis and do not necessarily reflect the opinions of Sensexnifty.com or its affiliates.