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Below the Year End Quote by Mr. Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Allianz Life

"Amidst a mixed global and domestic economic environment, India’s financial markets displayed resilience in 2024. While the large cap Nifty 50 index delivered a modest ~9% return during the year, mid and small cap indices delivered ~24% return for the second successive year. Inflation so far this year averaged at ~5%, staying above the RBI's 4% target, which led the central bank to hold policy rates steady while easing liquidity through a reduction in the cash reserve ratio.

GDP growth for FY24-25 is projected at 6.6%, slightly moderating as inflationary pressures impacted consumption and economic expansion. The consumption sector faced headwinds, with subdued demand growth, while corporate earnings in reflected muted growth amid challenging conditions.

Globally, with inflation moderating in the U.S., the Federal Reserve started cutting rates, providing relief to financial markets and improving sentiment. However, domestic headwinds, including a slowdown in consumption and tepid earnings growth, highlighted vulnerabilities in India’s recovery. Despite these challenges, strong government spending and robust economic fundamentals continue to position India as one of the fastest growing economies, offering long-term potential for wealth creation."

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