Indian markets' returns will be in double digits in 2025, investing in these sectors can give huge profits

The returns of Indian markets may remain in double digits this year (2025). However, volatility in the stock market may continue as global conditions are changing. Utkarsh Sinha of Bexley Advisors has made this estimate. In a conversation with Moneycontrol, he told many important things about the stock market and investment. He believes that the earnings growth of financial services, renewables and manufacturing sectors may remain better. The government has increased the focus on capital expenditure. These sectors will benefit from this.

There is more stability in India compared to other regions

Sinha said that global capital is looking for stability. Amid the growing problems in the US and Europe, India ( Indian Markets ) can be the choice of global investors. India has more stability than other regions. However, no economy can escape the impact of policy changes. But, stability has been seen in India in terms of economic direction, regulatory clarity and pro-investment. This makes it an attractive destination in the long term.

Government's focus on reforms in capital markets

He said that there is turmoil in America due to tariffs. On the other hand, there is confusion in Europe due to the economic policies of different countries. On the other hand, the government in India has maintained its focus on ease of doing business. A lot of money is being spent on infrastructure. Reforms in capital markets have increased the confidence of investors. These are the conditions that differentiate India from any other market.

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Retail investors' confidence increased in stock markets

Will the recent fall make retail investors stop investing in stocks? In response to this question, Sinha said that never before has so much interest been seen from retail investors in India. There has been a change in the investment pattern in India. The savings of families are now going into stocks. More than Rs 18,000 crore is being invested every month through SIP. The number of demat accounts has increased to more than 13 crore, which indicates that retail investors are looking at the stock markets with hope.

The valuation of midcap-smallcap stocks has come down

Is it time to stay away from smallcap-midcap stocks? In response to this, Sinha said that the bad phase of midcap and smallcap stocks is over. However, valuations are still high in some pockets. But, due to the beating that has continued since the end of 2024, the valuation of midcap and smallcap stocks has come down. Due to this, institutional investors have again started investing in fundamentally strong midcap stocks, especially industrials, financials and manufacturing. These stocks have the potential for good growth in the future.