Market Rebound Likely In H2

Mumbai: NSE Nifty index could reach 25,000 by December 2025, it closed at 22,547.55 on Tuesday (Feb 25), driven by a revival in consumer spending, improved employment trends and easing foreign investor selling, according to Emkay Institutional Equities, which further stated that the Indian stock market is expected to remain volatile in the near term, but a recovery is likely in the second half of 2025.

The research firm has projected that the first quarter of 2025 is likely to witness increased market fluctuations due to weak demand and global uncertainties. However, from the second half of the year, a pickup in retail lending, better liquidity conditions, and government welfare spending are expected to support economic recovery and boost market sentiment.

“Markets tend to over-react and overextend on both, the upside and the downside,” said Nirav Sheth from Emkay Global Financial Services. He added that the bottoming process is usually volatile which we are currently witnessing. “We estimate that the worst of the earnings downgrade cycle is behind us and expect a recovery in the second half of the fiscal – triggered by renewed government spending and tax relief led consumption spend. It is time to buy,” Sheth mentioned. On a sectoral level, Emkay Institutional Equities maintains an Overweight stance on discretionary consumption, real estate, and healthcare.