The last week of December was not good for the stock market. Last week, investors lost more than Rs 18 lakh crore. There was only red everywhere. Even big companies could not save themselves from this fall. Due to this fall, the market cap of companies listed on BSE fell to Rs 441 lakh crore. 

In just one week, the BSE fell by 5 percent. In such a situation, it is a legitimate question that how the coming year is going to be for the Indian stock market. Let us find the answer to this question on the basis of a report in this news today.

What's in the report?

According to the latest report of Motilal Oswal Wealth Management, the Indian stock market will end 2024 on a positive note on the back of strong economic growth. At the same time, Nifty is expected to register an annual gain of 13%. This will be the ninth consecutive year when the Indian market will end the year with positive growth.

How was 2024

The report states that the Nifty hit its all-time high of 26,277 in September due to growth in corporate earnings in the first half of 2024, surge in domestic inflows and strong macroeconomics. However, in the last two months, the market has fallen 11% from its highest level due to selling by foreign institutional investors (FIIs) and domestic-global economic factors.

How will 2025 be for the stock market

According to the report, consolidation in the market may continue in the first half of 2025. However, there is a possibility of improvement in the second half, which will be possible due to increased rural spending, a boom in the wedding season and an increase in government spending. At the same time, a compound annual growth rate (CAGR) of 16% can be recorded in income during the financial year 2025-27.

Major economic and political events

The report said that domestic and global events will have a major impact on the Indian stock market. The possible rate cut by the Reserve Bank of India (RBI) in February 2024 and the expectation of changes in interest rates in the US may lead to volatility in the market. Apart from this, the possibility of changes in trade policy after Donald Trump takes over as US President in January can also affect the market.

The Union Budget of February will be decisive

According to the report, the Union Budget to be presented in February 2024 will play an important role in guiding the market. Due to the weak global economic environment and mixed macroeconomic factors domestically, the market may remain in consolidation mode in the near term.

These things will also have an impact

Motilal Oswal's report says that the strong balance sheets of Indian companies and economic growth prospects will keep the long-term trends positive. According to the report, strong domestic demand and rising rural incomes can take the market to new heights after 2025.