This year (2024) was looking great for the stock markets till the end of September. But, investors’ fun was spoiled due to the fall in October. Investors are worried after the big fall in major indices in October. But, according to market experts, investors are expected to get good returns from the market in the next year i.e. 2025 also. This return can be in double digits. However, experts say that investors should avoid investing in shares at high levels.
There will be no further decline in Nifty
According to Prashant Jain, founder of 3P Investment Managers, there is not much scope for further decline in Nifty from here. The reason for this is the good growth of the Indian economy. He expressed hope that the returns of some sectors including banking will be good. Valuations are fine in these sectors. He said, “If you look at the 10-20 per cent return of Nifty, it is close to the growth of the economy in rupee terms. There are big pockets in Nifty like banks, which have underperformed. Their valuations are good. So I believe that There is no possibility of Nifty falling from here.”
Danger of increasing valuation of shares
Manish Chokhani, director of Inam Holdings, said that the market is moving ahead of its fundamentals. He said that he wants consolidation in Nifty. This will not increase the valuation of his top holdings. As consolidation continues, I will not have to sell shares of my favorite companies as their prices have increased significantly. On the other hand, veteran investor Madhu Kela believes that the fluctuations in Nifty or its remaining in a limited range will not affect those who want to buy stocks at lower levels.
Focus will be on stocks of small companies
Chokhani said that the world of NSE 500 stocks is worth 5 trillion dollars. Out of these, there are only 11 companies which have 25 percent stake. It is difficult to expect more than single digit returns in the long term from such stocks. After this come about 30 such companies which are worth about 1.2 trillion dollars. This means that each company is worth an average of $40 billion. Additional 80 companies fall in the third category, which is worth about 1.2 trillion dollars. But, the real focus is on about 370 fake companies, whose valuation per company is $3-4 billion.
