India’s stock market is set for a big boost, with experts predicting $50-70 billion in fresh investments flowing into equities over the next year. This exciting news comes from global brokerage Jefferies, which shared its insights in a recent report.
Even though foreign investors have pulled back to multi-year lows, Jefferies sees India as the top pick for long-term growth in global markets. Their ‘Greed & Fear’ report calls 2025 a time of “healthy consolidation” for Indian stocks, meaning steady progress without wild ups and downs.
What’s driving this optimism? Strong domestic flows from mutual funds and SIPs. These consistent investments from everyday Indians will soak up most of the new foreign money, keeping the market’s momentum alive. Jefferies expects this to pave the way for a fresh stock market rally in 2026 as India’s economy accelerates.
Recent government moves are adding fuel to the fire. Cuts in Goods and Services Tax (GST) across industries should spark more consumer spending and free up liquidity. Plus, the US Federal Reserve’s latest rate cut raises hopes that the Reserve Bank of India (RBI) might ease interest rates again before 2024 ends.
Jefferies believes a 10-15% return on investments could even feel conservative. They point to the combo of GST reductions, potential RBI rate cuts, and robust corporate earnings as key factors that could deliver more.
Small and mid-cap stocks in India are another highlight. Despite their higher valuations, these companies show stronger earnings growth than large-caps, making them a smart bet for investors. “India’s small to mid-cap universe continues to shine with higher earnings potential,” the report notes, justifying why people should keep investing here.
Overall, India’s mix of booming domestic demand, rising corporate profits, and smart policy support sets it apart as the hottest growth story in global equities. If you’re eyeing Indian stock market trends or SIP investments, this could be your cue to stay tuned.
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