The year 2024 was a strong one for equities, and election mandates globally have paved the way for a strong 2025. Money supply is expected to grow globally, with: 📌The US set to cut income tax rates, 📌China increasing its stimulus to revive the economy, and 📌The Indian BJP manifesto aiming to increase Capex and jobs. Indian equities underperformed globally in 2024 due to lower credit.
Open FlipThe Indian rupee has depreciated 2.3% against the dollar in 2024, reaching a record low of 85.12. However, at the same time, rupee volatility remains low compared to historical levels and other Asian currencies. High US yields and a strong dollar have primarily weighed on the rupee, while rangebound oil prices and RBI interventions have provided some support.
Open FlipThe equity market was quite volatile in 2024 but one segment that grabbed many headlines was the equity derivatives segment that was high on the regulatory scanner as well, which ultimately led to significant changes in the rules that have altered the dynamics of the whole futures & options (F&O) segment.
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