Indian Stock Markets Likely to Recover in Next 12–18 Months: HDFC Securities CEO

Domestic stock markets, which have witnessed volatility over the past year and a half, are expected to recover in the coming months, according to HDFC Securities Managing Director and CEO Dhiraj Relli. He stated that improving global conditions and reasonable stock valuations are creating a favorable environment for markets, making the next 12–18 months highly promising. With foreign portfolio investors gradually returning and currency stability expected, Indian equities are likely to regain momentum after a period of underperformance compared to global markets.

Relli projected corporate earnings growth of around 14–15% next year, with benchmark indices such as Sensex and Nifty potentially gaining 12–15%, while mid- and small-cap stocks may grow by 18–20%. He also highlighted the rising participation of Gen Z investors, increasing adoption of discount brokerage platforms, and the growing role of artificial intelligence in investment research and portfolio decisions. Banking, automobiles, electronics, travel, and insurance sectors appear attractive, while investors are advised to remain selective in IT and pharma stocks and exercise caution while investing in IPOs, especially SME offerings.