D-St steadies for another climb

H2CY25 likely to see further gains despite global crosswinds, say analysts

- SAI ARAVINDH

With Dalal Street closing the first half (H1) of calendar year (CY) 2025 near record highs, analysts expect equities to remain firm in the second half as well, buoyed up by macroeconomic tailwinds that could counterbalance global risks.

At the headline level, they see the benchmark Nifty index rising up to 6 per cent from current levels over the next six months, despite likely pullbacks triggered by global events ranging from tariffs to oil prices and geopolitics.

Domestic triggers, according to Chokkalingam G, founder and chief investment officer at Equinomics Research, include solid economic growth, stable inflation, low oil prices, and a normal monsoon. A continued focus on capital expenditure could also help sustain the market's momentum, he said.

The Reserve Bank of India, in its June monetary policy meeting, held its 2025-26 gross domestic product growth projection steady at 6.5 per cent despite economic uncertainty, and said the aspirational growth target remains 7-8 per cent. It also lowered its inflation forecast for the year to 3.7 per cent from 4 per cent.