Mumbai, Dec 17 (NationPress) The enduring growth narrative for India is solidly supported by favorable demographics and stable governance, indicating that Indian equities are poised to remain resilient in the upcoming year, as per a report released on Tuesday.

Strong earnings growth is anticipated in 2025 for sectors such as private banks, capital goods, and digital commerce, according to insights from ITI Mutual Fund.

In 2024, major indices – Nifty 50 and Sensex – yielded positive returns of 14.32% and 12.55%, respectively.

Indices representing various market capitalizations – large, mid, and small, as indicated by Nifty 100, Nifty Mid Cap 150, and Nifty Small Cap 250 – experienced increases of 17.80%, 27.60%, and 30.71%, respectively, as of December 13.

Rajesh Bhatia, Chief Investment Officer of ITI AMC, stated, “Indian equities are likely to show strong performance in the upcoming year. We expect sectors like private banks, IT, digital commerce, capital goods, and pharma to have a clearer trajectory towards stronger earnings and anticipated robust performance.”

The Indian economy has demonstrated positive trends, with an increase in Goods and Services Tax (GST) collections and encouraging Kharif crop sowing statistics.

There is a notable strengthening in rural demand, with the Purchasing Managers' Index (PMI) and exports reflecting positive momentum, as highlighted in the report.

India is currently undergoing a significant, multi-year capital expenditure (capex) cycle that is anticipated to lay a strong groundwork for future economic advancement.

Private sector investments are projected to reach a decadal high of Rs 55,122 billion, signaling a broad-based growth phase that could gain momentum in the years ahead, according to the report.

The financial services sector in India displays promising resilience, with a decreasing gap between bank credit growth and deposit growth, which is expected to alleviate margin pressures.

Particularly, the banking sector has shown strong return ratios and improving capital adequacy levels, reducing the necessity for new capital injections.

Valuations of private sector banks appear reasonable in comparison to the broader market, suggesting stability and long-term potential, as noted in the report.