New Year Street race sparks investor hope

Stocks lit a spark of optimism for investors in the New Year as the benchmark indices roared back, even as experts keep their fingers crossed on whether the rally has legs. Despite election-related uncertainties in India and the US, plus a selling spree by foreign investors, the Nifty and Sensex managed to close 2024 with gains of 8.8% and 8.1%; however, the much-awaited Santa Claus rally did not materialize in December, leaving investors waiting for a New Year surprise. According to Aashish Somaiyaa, chief executive officer of WhiteOak Capital AMC, a wide array of stocks and sectors delivered returns multiple times over frontline indices in the last year, even as the Sensex and Nifty returns over the last two, three and five years remained in line with long-term average and respective earnings growth. “In India, many stocks have surged on the back of earnings expectations, and 2025 will be the year to see if those expectations translate into results, as markets ultimately align with earnings growth,” she said. And read | Heavy FII selling, derivatives expiry torpedo relief rally For this year, Sunil Jain, vice-president of derivatives and alternatives at Elara Capital, said the Union budget, ongoing government capex, efforts to boost consumption, and the direction of Trump’s policies will be crucial factors influencing both domestic and foreign inflows.