Moneycontrol PRO
HomeNewsBusinessMarketsJulius Baer sees consumption revival in India taking stocks to record high

Julius Baer sees consumption revival in India taking stocks to record high

The gauge is 4.6% away from its peak set in September and the central bank’s jumbo rate cut Friday is further raising expectations of a record-breaking surge.

June 09, 2025 / 09:57 IST
Electronic board indicates the latest stock figures at the the National Stock Exchange (NSE) in Mumbai, India, on Friday, Dec. 16, 2016. Photographer: Dhiraj Singh/Bloomberg

Electronic board indicates the latest stock figures at the the National Stock Exchange (NSE) in Mumbai, India, on Friday, Dec. 16, 2016. Photographer: Dhiraj Singh/Bloomberg

Julius Baer Group is expecting Indian stocks to hit a new high in the second half of the fiscal year, as domestic consumption recovers.

“The biggest theme going forward will be a revival in consumption in India,” Nitin Raheja, head of discretionary equities at Julius Baer India, said in an interview. One third of his portfolio is in consumption-linked themes and he’s increasing bets on retailers focused on tier-two cities and apparel firms.

Lower- and middle-income segments will lead the pickup in India’s consumer spending, aided by slowing inflation, abundant monsoon rains and income-tax cuts, said Raheja, who oversees portfolio management services and alternative investment funds for the Zurich-based wealth manager in India.

India's Nifty 50 Gauge Is Trading Below Its Past Peak
There was a K-shaped recovery in India after the Covid-19 pandemic, and the bottom part which suffered the most will likely now see a revival, he added.

While elevated valuations could keep the market “range-bound” in the next few months, Raheja expects the benchmark NSE Nifty 50 Index to scale fresh highs after October, as consumer demand flows into corporate profits.

The gauge is 4.6% away from its peak set in September and the central bank’s jumbo rate cut Friday is further raising expectations of a record-breaking surge.

“Private consumption, the mainstay of aggregate demand, remains healthy, with a gradual rise in discretionary spending,” Reserve Bank of India Governor Sanjay Malhotra said Friday. “Rural demand remains steady, while urban demand is improving.”

Bloomberg
first published: Jun 9, 2025 09:57 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347