India’s stock market downturn continues, with Bank of America (BofA) predicting further risks and projecting single-digit returns for the Nifty 50 in 2025.

Key Market Trends and Projections

1. Market Correction Since September 2024

• The market peaked in September 2024 and has since declined, aligning with BofA’s bearish outlook.
• Steep corrections have been observed in various sectors, particularly mid- and small-cap stocks.

2. Earnings Growth Concerns

• Nifty EPS growth is projected at 12% for FY26, below the consensus estimate of 15%.
• Slower capital expenditure growth and declining commodity prices are contributing to the shortfall.

3. Capital Expenditure Moderation

• Capex growth is expected to slow from 20% to 13% in FY25-27, impacting market dynamics.

Investor Takeaways: Monitor Market Sentiment

Investors tracking market trends should use the following tools:

• Market Most Active API – Track actively traded stocks in the Indian market.
• Financial Growth API – Analyze earnings growth trends across Indian stocks.

Final Thoughts

While India’s structural growth remains intact, short-term volatility and earnings risks persist. Investors should watch corporate earnings and macroeconomic shifts closely.