India's equity markets went up to a record level and sealed the country with a market capitalisation of $5.29 trillion this year, ranking fourth in market cap after the US, China, and Japan, said a report on Thursday.
Benchmark indices Nifty and Sensex scaled to record peaks of 26,277.35 and 85,978.25 respectively, in this calendar year, as per a report from Pantomath Group, leading financial services conglomerate.
GDP growth stood at 8.2 per cent in FY24, surpassing expectations, though inflation and weak consumption slowed growth in the first half of FY25.
"A rebound is anticipated, driven by government spending, private investments, and rural growth revival," the report mentioned.
According to Madhu Lunawat, CIO and Fund Manager, Bharat Value Fund, there exist innumerable opportunities for both domestic and global investors for their medium-term investment perspectives of participation in India's long-term growth story in the form of AIF, PMS, Mutual Funds, and the like.
"The investor's preference towards equity as an investment avenue based on their Risk appetite is constantly increasing in the last couple of years as compared to earlier. Such kind of sustainable fund flow from different investors is a positive sign and this liquidity will help market to support in any kind of correction or declines," Lunawat noted.
The Indian agriculture sector is poised for growth, said the report, driven by the 'Vision 2047; roadmap that promotes sustainable farming, crop diversification-millets, and climate-resilient seeds.
The automobile sector grew 10 per cent to Rs. 6.14 lakh crore with a sharp focus on EV adoption and exports projected at $30 billion by FY26, the report mentioned.
India continues to commit to net-zero emissions by 2070 and 50% renewable energy by 2030, under the aegis of the National Green Hydrogen Mission and 100% FDI in renewables.
Indian corporate earnings are expected to show further improvement. The capex spending by government will lead to revival in overall GDP growth and companies benefiting from a softening in commodity prices, leading to enhanced profitability and margins," said Devang Shah, Head Retail Research, ACMIIL.
Companies are expected to continue strong performance in the upcoming quarters, driven by a robust domestic demand environment, positive macroeconomic factors and private capex revival, Shah added.
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