Will the stock market crash in 2025? Watch out for these 6 risk factors
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After a historic nine-year streak of positive returns, a wave of optimism has swept over Nifty bulls, with many anticipating another year of double-digit gains in 2025. However, the second half of 2024 served as a stark reminder to new investors of a timeless truth: Dalal Street is far from a one-way ride. The undercurrents of risks are growing stronger as investors will have to deal not only with global headwinds of geopolitical tensions and trade frictions but also the enemy within - slowing domestic growth, elevated valuations and earnings pressure. Bull markets are generally powered by a mix of earnings growth and multiple expansion, the latter often influenced by sentiment and liquidity. But 2024 saw the market being driven more by multiple expansion than by actual earnings growth. As the saying goes, mean reversion is the unyielding rule of markets, and it could make its presence felt in 2025. Here are 6 key risks that could disrupt...