Motilal Oswal’s Rajat Rajgarhia sees brighter 2025 for markets, lists key catalysts for 10-12% gains – CNBC TV18

“We see no reason why things (the market) should not move up from here in 2025,” says Rajat Rajgarhia, Managing Director and CEO at Motilal Oswal Institutional Equities. “On what 2025 should be, I would think at the broader market, a 10-12% kind of a year is good,” he added.

He noted that while there were challenges, 2024 was not a bad year either, with the large-cap index gaining nearly 13-14% and midcaps performing reasonably well.

Rajgarhia highlighted three key trends that will drive the market in 2025: a shift toward accommodative interest rates from early 2025, increased government spending, and a rebound in consumption due to moderating inflation and upcoming festive seasons.

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He picks capital markets, financials, and capex as the top three investment themes for the year.

The capital markets theme, which includes companies across the value chain from AMCs to intermediaries and depositories, is expected to offer long-term growth potential, spanning one to five years.

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Within financials, he prefers banks. As the rate cycle becomes more accommodative, private banks are expected to make a strong comeback, addressing their underperformance over the past two years.

With attractive valuations and solid earnings growth, banks are seen as a promising investment opportunity.

Capex will continue to strengthen as the economy picks up

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