In the year 2025, investors will be closely watching five key factors that are expected to shape the domestic markets. These factors include:
1. Trump Policies: The new administration under President-elect Donald Trump is expected to implement policies that could have an impact on global trade, tariffs, and various sectors. Changes in tariffs, deregulation policies, and immigration reforms will be closely monitored for their impact on the economy.
2. Budget 2025: Finance Minister Nirmala Sitharaman will present the Budget for 2025 with expectations of pump-priming measures to revive the economy. Tax cuts, incentives, and other measures to boost rural areas are anticipated. The Budget is also likely to include cuts in income tax for individuals.
3. Central Banks: The rate movements of central banks in Japan, India, and the US will be closely watched. Changes in interest rates by these banks can have a significant impact on the global economy and financial markets. The RBI is expected to cut rates to boost credit growth in India.
4. Monsoon Activity: The progress of the monsoon season in India will be crucial, especially for rural regions that depend on agriculture. The distribution of rains and any potential weather patterns, such as El Nino, will be monitored closely for their impact on the economy.
5. Global Tensions: Tensions in regions such as Israel-Hamas and Russia-Ukraine can impact global sentiment and trade. India’s relationship with neighboring countries like Bangladesh will also be closely monitored for any potential disruptions in trade and business sectors.
Overall, experts are advising investors to remain cautious in 2025 due to the increasing complexity of global macroeconomic landscape. Flexibility and an open-minded approach to investing will be key for navigating the uncertainties in the market.
