Icici Direct – Market Strategy, 2025

The main theme of the report concerns market strategy for 2025 with a focus on income recovery to overcome upcoming volatility. In 2024, there was high volatility in the domestic equity market, with record levels followed by declines, but with an overall growth of ~10%. Mid and small-cap companies continued to outperform large ones, showing growth of over 25%. All asset classes showed significant returns in 2024, including gold, large-cap stocks, mid/small-cap stocks, debt, and real estate. A record amount of capital was raised through primary capital markets in India in 2024. Income recovery is expected to help cope with upcoming volatility in 2025, with a projected income growth of 7% for Nifty in the 2025 fiscal year and a compound annual growth rate of 15% during 2025-2027.