As 2025 unfolds, key economic events in India such as central bank policies, the Union budget, and crucial data releases will play a pivotal role in shaping inflation, interest rates, and growth outlook. These developments are set to influence market dynamics, particularly in sectors like technology, banking, and consumer goods.
Investors can track stocks and sectors directly tied to these events, as they often drive market activity, not just on the announcement day but also in the lead-up to them.
Here’s a look at the key events in 2025 and the stocks that are likely to capture the market’s attention.
The first data print in 2025 will be the release of monthly auto sales numbers by Indian automobile companies. Releasing on January 1, 2025, auto sales data will be closely watched, especially as the sector has faced recent pessimism. As per CRISIL’s report, the year 2024 has been rather slow for the passenger vehicle industry in India.
Ahead of the data release, one may track shares of Tata Motors, Maruti Suzuki India, Hyundai Motor, TVS Motor Company, Mahindra & Mahindra and other automakers.
India’s retail inflation peaked in October, with the Consumer Price Index (CPI) rising to 6.21%, surpassing the Reserve Bank of India’s tolerance band of 2%-6%. Higher inflation has subdued consumer demand, especially among lower-middle and middle-class families.
In December, Godrej Consumer Products forecasted flat underlying volume growth and mid-single-digit sales growth in the domestic market for Q3FY25. This makes the January inflation data release crucial for investors. Ahead of the inflation data release around January 11, shares of Hindustan Unilever, Godrej Consumer Products, Dabur, Marico and others in the FMCG sector will be in focus.
Starting in January 2024, many companies will release their third-quarter earnings results for fiscal year 2025 on the stock exchanges. The earnings season typically begins with Infosys reporting its quarterly results.
Infosys’ Q3 financial results will be presented to the Board of Directors on January 16, 2025. IT giants like TCS, Infosys, HCL Tech and the overall performance of the IT sector and other industries will be in focus in Q4.
The US Federal Open Market Committee (FOMC) which decides on the US monetary policy will give its interest rate decision on January 29, 2025. Traders closely monitor these rate changes, as short-term interest rates play a key role in currency valuation.
A stronger dollar raises the cost of dollar-denominated imports for India, particularly energy and industrial commodities. During the Fed meeting in January, share prices of major oil importers, including Indian Oil Corporation, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Reliance Industries Limited will be in focus.
On February 1, Finance Minister Nirmala Sitharaman will present the Union Budget for the 2025-26 financial year. Allocations for the Defence, Infrastructure, and Agriculture sectors will be in focus as the country closely watches the budget.
Despite the Union budget being presented on a Saturday, both the BSE and NSE have announced that stock markets will remain open for trading. Defence stocks including Data Patterns (India), Hindustan Aeronautics, Cochin Shipyard and others will be on the radar. While in the agriculture sector, the market will eye Bayer CropScience Limited, Kaveri Seed Co, Chambal Fertilisers and Chemicals Ltd.
The first RBI Monetary Policy Committee meeting of 2025 will also mark the debut of Sanjay Malhotra as the newly appointed Governor of the Reserve Bank of India. The meeting is scheduled for February 5, 2025 – February 7, 2025.
Market participants will pay close attention to the tone set by the new governor, seeking clues on potential future rate decisions. Rate-sensitive sectors such as Real estate, banking and the auto industry remain in focus ahead of the MPC policy decision.
Banking stocks such as State Bank of India and HDFC Bank along with Real Estate stocks such as Godrej Properties, and DLF will be in focus.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
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