** 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;))