Indian stock market falls in 6 of 9 sessions in January: How should you rejig your portfolio now?
Live MintAfter delivering moderate returns in 2024, Indian markets have lost 2.3 per cent in January 2025 so far. Divam Sharma, Founder and Fund Manager at Green Portfolio PMS, stressed the need for investors to recalibrate their approach in light of uncertainties arising from global economic pressures, government policy shifts, and technological advancements. “While large-cap stocks could face global headwinds, mid-cap and small-cap companies in innovative sectors are expected to outperform in 2025,” Sharma said. Making a similar case for investments in mid and small-cap stocks, Anil Rego, Founder and Fund Manager, Right Horizons PMS advised increasing exposure to high-conviction ideas within the small and mid-cap stocks segment, especially in themes with favourable earnings growth outlooks, while being mindful of mounting geopolitical risks and expensive valuations. He provided a nuanced market outlook, citing - 1) Fair valuations in large-cap stocks, 2) Stretched valuations in broader markets, and 3) Reasonable valuations in select high-quality small and mid-cap stocks with strong growth potential.