JP Morgan India sector outlook 2025. Sanjay Mookim highlights auto, consumer discretionary and real estate as the key growth drivers for Indian markets next year.
JP Morgan India Sector Outlook 2025: Why Analysts Expect Stronger Momentum
JP Morgan remains optimistic about India heading into 2025. Sanjay Mookim, Head of India Equity Research, believes three sectors are positioned for meaningful expansion: auto, consumer discretionary and real estate. His outlook draws from falling borrowing costs, early signs of a demand revival and continued policy support.
Mookim explained at the firm’s investor conference that India’s advantage lies in its domestic demand cycle, which helps the country grow even when export heavy economies struggle. He added that market performance has been muted over the past year, yet core fundamentals remain strong.
Auto Sector: Volume Growth and Policy Tailwinds
The auto industry is expected to lead the next leg of recovery. GST revisions have lowered prices across entry level and premium categories. At the same time, the RBI is working to ease credit availability through lower risk weights and smoother loan transmission.
Mookim said the sector benefits from strong elasticity. Even small cuts in taxes or interest costs usually translate into sharp gains in sales volumes. Companies that focus on competitive pricing and faster product cycles are likely to gain the most as affordability improves.
Consumer Discretionary: Urban Demand and Confidence Rebound
Consumer discretionary spending has been subdued for much of 2024, but the trend is now shifting. The RBI’s latest consumer survey shows a pick up in urban sentiment, supported by better hiring conditions, improving incomes and expected rate relief.
Mookim pointed to the next phase of GST restructuring as an important trigger. He expects a noticeable revival in lifestyle, leisure and non essential spending as confidence strengthens. Retail, hospitality and premium goods may see the sharpest lift in 2025.
Real Estate: Strong Pre Sales and Structural Support
Despite concerns about excess supply in some urban markets, real estate continues to show resilience. JP Morgan notes that several micro markets have reported firm bookings and sustained interest from both end users and investors.
Mookim said that although supply remains a talking point, demand has stayed steady. He expects momentum to continue through 2025 thanks to national housing initiatives, urban development projects and improving mortgage affordability. Commercial real estate and mixed use developments may see higher traction as well.
Valuation, Flows and India’s Position Among Emerging Markets
Foreign investors have been cautious, but domestic inflows have provided a strong cushion for Indian equities. JP Morgan estimates that India still trades at a discount of about ten percent relative to the S&P five hundred, which keeps room open for selective upside.
India now holds a significant weight in the MSCI Emerging Markets Index and retains an Overweight rating from JP Morgan. According to Mookim, lower inflation, better fiscal stability and steady liquidity conditions have made India a preferred market when global volatility rises.
Market Outlook for 2025
JP Morgan expects India’s GDP to grow faster than most emerging and developed economies next year. Auto, discretionary consumption and real estate are likely to guide sectoral performance. The firm has set a Nifty fifty target of 26,500 for the next six to twelve months, dependent on global stability and timely domestic policy action.
Mookim summarised the outlook by saying that India’s growth engine remains structural and not cyclical. Rising urban incomes, improved inflation management and supportive policy frameworks position the country for sustained gains across consumer and housing led sectors.
