Can the stock market crash in 2025 too?
It is difficult to predict when the stock market will turn in which direction. When the year 2024 started, the market was on its boom. people thought that the market would remain like this throughout the year and would make investors very rich. But, the results of the second half played such a game that the entire market turned red. Lakhs of crores of people's rupees drowned in a few days. Now the question is arising whether something similar can be seen in the year 2025 as well. Let's know about it in detail.
How will the stock market be in 2025?
Indian stock market in 2025 can be a challenging year for investors. Historically, the series of positive returns in the last nine years has raised hopes of double digit profits among investors. However, the results of the second half of 2024 remind that the estimates of a one-sided rally in the stock market may get a setback. This year, investors will data-face several risks, including geopolitical tensions, global trade disputes, domestic economic slowdown, and uncertainty over earnings growth.
Income Growth and Market Direction
The market rose in 2024 mainly due to multiple expansion, while real earnings growth remained weak. If earnings do not meet expectations, the market direction may be affected in the short-term. capital expenditure is likely to increase in the second half, but signals still point to a recession.
Global Trade Tensions and Geopolitical Risks
Donald Trump's "Make America Great Again" policies could have a major impact on global trade. The Russia-Ukraine war, conflict in the Middle East, and a possible rise in crude oil prices could increase challenges for India. These risks could put pressure on domestic markets.