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In 2024, FPIs reduced investments in Indian equities due to high valuations and geopolitical uncertainties, but showed increased interest in Indian debt markets. Factors like weak corporate earnings, geopolitical tensions, and high inflation also impacted investor confidence. Recovery in FPI inflows is anticipated in 2025, driven by corporate earnings growth and lower interest rates.
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India's defence sector is poised to witness a significant boom in 2025, fueled by increased government spending, rising indigenization, and a robust domestic order pipeline. Brokerage firms Phillip Capital and Elara Capital are optimistic about the growth prospects in this space, with Hindustan Aeronautics and Bharat Electronics emerging as their top stock picks. Here is a list of six stocks poised to benefit from Indias growing defense investments:
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Arindam Mandal of Marcellus suggests Nasdaq could see higher EPS growth than Nifty50 in 2025, emphasizing quality stocks outside Big Tech. He advises Indian investors to diversify with 15-30% in international markets, focusing on themes like Technological Disruption, Industrial Revival, and Aging Demographics.
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