From Financial Modeling Prep: 2025-02-18 01:50:21

The Nifty 50 has seen a sharp decline since its peak in September 2024, with various sectors falling 13% to 34%, according to Morgan Stanley. Bank of America predicts single-digit returns for 2025 with high volatility, especially for mid and small caps facing negative returns due to valuation contraction.

Key risks keeping the Nifty under pressure include corporate earnings downgrades, policy uncertainty, weak FII and DII flows, slowing capex growth, and valuation concerns. Factors like slower capex growth, policy uncertainty, and weak investor flows could further impact the market.

Investors are advised to remain cautious on mid and small caps, monitor corporate earnings, track FII and DII flows, and watch Fed and US policy trends. Bank of America’s outlook for single-digit returns in 2025 highlights the need for a selective approach and close monitoring of key macroeconomic trends.



Read more at Financial Modeling Prep:: Nifty 50 Correction Deepens: Bank of America Maint…