Mumbai, Feb. 18 -- Indian equity markets are likely to witness heightened volatility in the near term, with a gradual recovery expected in the second half of the calendar year 2025 (H2CY25), according to Emkay Institutional Equities.

The firm forecasts Nifty to reach 25,000 by December 2025, backed by improving consumption trends, a revival in unsecured lending, and increased government welfare spending.

The brokerage remains Overweight on Discretionary, Real Estate, and Healthcare sectors, citing strong demand potential.

Industrials, IT, and Energy have been downgraded to a Neutral stance, while Financials, Staples, and Materials remain Underweight due to valuation concerns and structural headwinds.

A rebound in discretionary consump...