Despite FIIs ending 2024 with less than a billion dollars of net buying in India amid concerns related to high valuations, slowdown in earnings growth, rising yields, and weakening rupee, investors remain bullish on Indian stocks with the Sensex target going above 90,000, according to a poll of market participants by ETMarkets.
Out of 17 participants, including brokerages and advisors, only one has a bearish outlook for 2025. About 82% of them believe that equities will outperform other asset classes in the new year, including gold, silver, and debt.
While the Sensex is up by just about 9% this year, gold and silver ETFs have outperformed by a wide margin, with year-to-date returns of around 18%.
When asked where they see the Sensex by December 2025, a majority of 65% of participants were confident that the index will be above the 90,000 mark. Another 30% were of the opinion that the Sensex will be around the 85,000 mark, closer to its September all-time high of 85,978.
FIIs are likely to be a pain point for bulls in the new year, as a strong USD leads to FII outflows from emerging markets like India. Only 29% of participants believe that FIIs will be heavy buyers of Indian stocks in 2025, while a majority of 47% are unsure about which way the big money will flow.
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Brokerages say while returns could be volatile in the year as earnings growth has moderated significantly to a low single-digit growth rate in FY25, the market still appears primed for a strong run, with the Sensex likely to breach 90,000 levels by December 2025.
“We can expect equities to surpass their all-time high level and reach another whole new level in 2025. The only thing that coul
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