Market outlook & portfolio strategy: Where to invest at the current levels?

Amid muted stock market returns in 2025, guided by GST and income tax reforms, along with Trump policies, experts recommend focusing on quality large-caps ahead of Q2Fy26 results.

Stock market outlook 2025: Calendar year 2025 has turned out to be a challenging year for equity investors with benchmark indices – BSE Sensex and NSE Nifty50 – yielding abysmal returns so far this year.

 

The headline gauges for large-cap equity returns have risen 5.1 per cent (Sensex) and 6.5 per cent (Nifty) year-to-date (YTD) in CY25 as investors digested the government’s tax concession-led consumption boost, including a cut in income tax and goods and services tax (GST), along with US President Donald Trump’s tariff and H-1B visa policies.

 

The broader Nifty MidCap and