Can Indian equities overcome volatility and deliver promising returns in Samvat 2082?

Synopsis

Indian stock markets delivered modest returns in Samvat 2081. The market faced volatility due to faltering earnings and foreign outflows. However, domestic buying showed resilience. Entering Samvat 2082, sentiment is expected to improve. Policy reforms and RBI liquidity infusion are anticipated. Earnings are projected to grow. A stock-specific strategy is advised for potential gains in banking, financials, and consumption sectors.

Indian equities offered modest returns of around 6% in Samvat 2081 after a record-breaking run in the previous year that culminated in a fresh all-time high in the last week of September 2024.

Since then, the market has remained volatile as earnings faltered and high valuations triggered aggressive foreign outflows.

Agencies

The tumultuous nature of Trump tariffs exacerbated the uncertainty. However, domestic buying remained resilient. Since last Diwali, the Nifty gained 6.2%, while the Midcap index advanced 4.3%.

The Smallcap index, however, declined 4%. As we enter Samvat 2082, market sentiment is expected to improve amid GST rationalisation, liquidity infusion by the RBI, and the government's impetus to manufacturing through policy reforms.

While earnings are expected to improve, the market may offer modest returns, and a stock-specific approach is likely to be rewarded.

Banking and financials, consumption, and other domestic-facing sectors are expected to offer good opportunities. RUCHITA SONAWANE collates top stocks recommended by brokers for the next 12 months.

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