Buckle up for the Ride of a Lifetime

Many IPOs flunked, while several fell below ethical governance standards, and quite a few bombed. However, the capital markets have their own way of self-regulating excesses

- SHAILENDRA BHATNAGAR

INDIA, ONE of the world's youngest equity markets, is set to fuel investors hope, as a virtuous combination of technology, hyper returns and plentiful choices drive the long-term growth potential of stocks and mutual funds.

Where will the market be, say 3-5 years from now, in terms of size and heft?

Who will be the new players on Dalal Street and what kind of sentiment will prevail in the markets? What are the major changes that one can foresee over the medium term? Business Today attempts a deep dive to predict what lies ahead.

Take a peek into the financial future of the world's fastest growing large economy!

Millennials and GenZ will increasingly matter in the scheme of things as they use the latest technological tools to navigate the often-treacherous financial markets. Newer and better websites, apps and advisory services are already catering to their growing needs of investing in mutual funds, equities and punt in futures and options.

It is true that Indian stocks are in a correction phase at the moment, mainly on account of a weakening rupee and frothy valuations in large parts of the market, but here are some major financial trends to look forward to:

BIGGER IS BETTER

The country's market capitalisation to-gross domestic product (GDP) ratio, a key measure of gauging acceptance of financial products, rose to 136% in December 2024 from 77% five years ago as the 2020 Covid-19 pandemic changed the way Indians traded and invested.

Fuelled by online trading platforms and live television coverage, India's financial ecosystem will become bigger, deeper and better in the coming years as a vibrant economy of 1.4 billion people taps into a reservoir of capital to fund growth.