** BofA Securities expects India's benchmark Nifty 50 index .NSEI to gain 14% in 2025, reaching around 25,000 by year-end
** While bearish on small- .NIFSMCP100 and mid-cap stocks .NIFMDCP100, BofA turns constructive on Nifty due to its cheaper valuations after recent correction
** "We expect small and midcaps to deliver negative returns in 2025 as they are still expensive on most fundamental metrics," say analysts led by Amish Shah of BofA Securities
** The Nifty has fallen about 15% from its record high levels in September, trading near 22,550 on the day
** Small- and mid-caps confirmed bear market in February
** BofA sees telecom, financials, industrials, energy, IT and autos driving 90% of Nifty's earnings growth
** Favours rate-sensitive domestic cyclicals such as financials and autos, expecting RBI rate cuts to boost economic and credit growth
** Key Nifty stocks expected to lead gains include HDFC Life HDFL.NS, Mahindra & Mahindra MAHM.NS, Bharti Airtel BRTI.NS, Axis Bank AXBK.NS, and Larsen & Toubro LART.NS
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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