Sectors to watch in 2025: Experts highlight manufacturing, healthcare, renewable energy, and more | Stock Market News

Indian stock markets have delivered an impressive 13 percent year-to-date (YTD) gain in 2024, with nearly all sectoral indices recording positive performance. The realty and pharma sectors stood out, posting gains of 39 percent and 32 percent, respectively. Meanwhile, indices like Nifty IT, Nifty PSU Bank, and Nifty Auto climbed over 20 percent each, showcasing broad-based growth. Additionally, Nifty Bank and Nifty Finance advanced by 10 percent and 15 percent, respectively, highlighting strong momentum in financial stocks.

As the calendar turns to 2025, market analysts are optimistic about further growth, identifying key sectors likely to benefit from global trends, supportive government policies, and technological advancements. Despite potential challenges such as global economic uncertainty and evolving geopolitical tensions, investors are presented with numerous opportunities to navigate the dynamic market landscape effectively.

Manufacturing, Infrastructure, Defence, and Auto: Riding the Growth Wave

Sandip Bansal, Senior Portfolio Manager at ASK Investment Managers, highlights the manufacturing, infrastructure, and defence sectors as areas of focus. According to him, activity levels in these sectors faced headwinds in 2024 due to elections, extreme weather conditions, and higher-than-average monsoons.

With government decision-making expected to accelerate and private-sector investments likely to gain momentum, these sectors could see a resurgence. The new US administration’s policies are also expected to benefit India’s manufacturing landscape. Bansal also expressed confidence in healthcare and discretionary consumption, given their potential to deliver steady returns.

Meanwhile, Anupam Roongta, Market Analyst at Share.Market said that supported by Government Initiatives India’s ambitious National Infrastructure Pipeline, valued at USD 1.4 trillion, and other infrastructure-focused policies provide a strong foundation for growth in the construction and cement industries. Auto sector premiumization is also gaining traction, supported by evolving consumer preferences and advancements in electric vehicles.

Healthcare, Renewable Energy, and Real Estate: Resilient Growth Narratives

Healthcare and renewable energy emerge as two promising sectors for 2025, according to multiple experts. Trivesh D, COO at Tradejini, emphasized healthcare’s resilience, with a 21.2 percent year-on-year earnings growth, fueled by innovative breakthroughs and global demand. Renewable energy is also poised for significant growth as India’s power demand continues to rise, driven by sustainability goals and clean energy initiatives.

Real estate, particularly the residential and commercial segments, remains another sector to watch. Jathin Kaithavalappil, Assistant Vice President at Choice Broking, believes urbanization and post-COVID recovery will drive this sector’s growth.

Technology, Chemicals, and Financial Services: Tapping into New Opportunities

Ajit Mishra, SVP of Research at Religare Broking, highlighted the technology sector, focusing on advancements in artificial intelligence, cybersecurity, and 5G communication, which could redefine industries.

The chemical sector, underperforming in recent years, may gain traction due to the US-China trade war. Anchal Kansal, Research Analyst at Green Portfolio, points out that Indian manufacturers are well-positioned to meet global demand, potentially driving growth in this space.

Meanwhile, financial services remain a strong contender for investment, thanks to India’s fintech boom. Anupam Roongta, Market Analyst at Share.Market, noted the country’s highest fintech adoption rate globally, creating vast opportunities for growth in digital payments and financial innovation.

A Year of Diversified Opportunities

Experts agree that 2025 offers a diverse range of investment opportunities, spanning manufacturing, healthcare, renewable energy, technology, financial services, and real estate. Investors should adopt a balanced approach, conducting thorough research and diversifying their portfolios to mitigate risks. As global and domestic factors shape market dynamics, these sectors hold the promise of growth for those willing to capitalize on emerging trends.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.