From Financial Modeling Prep: 2025-02-18 01:36:51

India’s stock market faces challenges with projected single-digit returns for the Nifty 50 and negative returns for small- and mid-cap stocks by 2025, per BofA. Market correction has led to declines in state-owned enterprises, low-float, and momentum-driven stocks. Earnings growth concerns arise from slower capital expenditure and weaker credit growth.

Earnings growth for Nifty expected at 12% for FY26, below consensus forecast of 15%. Capital expenditure growth is set to slow to 13% in FY25-27, dropping to 9% in FY25. U.S. policy uncertainty poses risks to Indian markets, impacting FII flows due to high U.S. bond yields and rupee depreciation risks.

Investors should monitor market sentiment, corporate earnings, capex trends, and FII flows. Despite short-term volatility and earnings risks, India’s structural growth story remains intact. Stay informed on global macroeconomic shifts affecting Indian equities for a balanced investment approach.



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