As financial markets gear up for 2025, there are several expectations with regards to how the indices will trade and the top themes that will dictate trade going forward. Atul Parakh, CEO of Bigul, outlines the key trends, challenges, and strategies that are expected to shape the global and Indian financial landscape. Speaking about the anticipated shifts, Parakh emphasizes the transformative role of technology, regulatory changes, and geopolitical factors in redefining investor behavior and market participation.
Impact of macroeconomic factors and trends in 2025
Parakh predicts that 2025 will witness an increased focus on regulatory measures, a strong push for sustainable investments, and the adoption of artificial intelligence (AI) in trading strategies.
These shifts signify a transition from the current volatility-driven market to a more stable and structured environment. “Investors are likely to adopt a more calculated approach as the market stabilizes, contrasting the present concerns around inflation and unpredictability,” Parakh states.
Global macroeconomic trends, such as easing inflation and interest rates in developed economies, are expected to bolster investment flows into India. “India’s economic growth is projected at 6.3% for 2025, supported by improved lending conditions and ongoing financial reforms,” he notes, citing Reserve Bank of India forecasts.
Geopolitical developments and market sentiment
Geopolitical events, including evolving trade relations between the United States and China and potential policy shifts under new U.S. leadership, will significantly influence market sentiment.
According to Parakh, such developments could prompt investors to recalibrate strategies, weighing risks and opportunities arising from global trade dynamics.
“Current geopolitical tensions are fragmented due to the Russia-Ukraine conflict, the US-China rivalry, and regional strife in the Middle East. These conflicts disrupt global trade, elevate energy prices, and increase inflation. Middle powers like India are leveraging their positions to navigate these complexities,” Parah also added
He further said that the 2024 elections worldwide could further influence international relations, while cybersecurity risks are rising alongside traditional military threats. Overall, the landscape is characterized by uncertainty and evolving alliances.
Behavioral shifts among investors
Recent trends indicate a shift in investor behavior, with an increased emphasis on data-driven decisions and risk management. Parakh foresees this trend deepening in 2025, as traders focus more on long-term value investing rather than speculative trading. “This marks a maturing mindset,
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