Budget 2025: Indian stock market lags global peers over past one year, highlights Samir Arora | Stock Market News

As the Union Budget is set to be presented today, February 1, 2025, market participants are preparing for heightened volatility in the Indian stock market. Historically, the Nifty 50 has recorded intraday swings ranging from 2% to 3% on Budget Day, presenting both lucrative opportunities and potential risks for traders.

Over the past year, global equity markets have demonstrated remarkable growth, with several key indices posting double-digit gains, reflecting resilience amid ongoing economic uncertainties. This trend was highlighted by Samir Arora, Founder and Fund Manager at Helios Capital, who shared data showcasing the strong performance of global markets.

In contrast, the benchmark Nifty 50 has corrected over 10% from its peak in the past four months, driven by sustained foreign fund outflows and concerns over elevated valuations. Commenting on the market dynamics, Arora noted in a post on X (formerly Twitter):

“Just to put Indian stock mkt performance in perspective – over last one yr- when people talk about how mkt has gone up a lot and it has to cool down etc.,” Arora said.

Arora’s comments come amid concerns that India’s market is due for a correction. However, the data suggests that relative to global benchmarks, the Indian stock market’s rise has been relatively modest.

US Markets Lead the Rally

The US markets showcased exceptional strength:

Asian Markets: Contrasting Fortunes

• MSCI China led with an impressive 30.48% growth, driven by tech sector recovery and government stimulus measures.
• MSCI India Net USD posted a moderate 4.74% gain, signaling cautious investor sentiment
• On the contrary, MSCI Brazil plunged nearly 22%
• MSCI Emerging Market index gained 12.5%, while MSCI Asia ex-Japan rallied 16.84% over the last one year

Outlook for 2025

As markets continue to navigate global economic shifts, factors such as interest rate policies, geopolitical developments, and technological advancements will play pivotal roles.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.