As we step into 2025, market experts emphasise the need for realistic return expectations. 2024 marked the ninth consecutive year of positive Nifty returns, showcasing India's evolution into a more mature market. However, the convergence of returns suggests fewer instances of 20–30% gains, with likely returns hovering around high single digits to low teens. Amit Khurana, Head of Equities at Dolat Capital, delves into the nuances of potential returns for the year. Amit Khurana points out that while many sectors and stocks have delivered robust performance, their current valuations reflect significant premiums, urging investors to have a reality check. While the possibility of double-digit returns exists, several critical factors could shape the market's trajectory. Amit Khurana Says: Inflation's Uptrend: Inflation, once seemingly under control, now poses a renewed challenge. Earnings Expectations: A perceptible slowdown in key sectors, coupled with concerns around government capex and the slow recovery in private capex, areas of caution. Consumption Patterns: Rural consumption shows signs of recovery, but urban consumption remains sluggish. What should investors focus on in 2025? Amit Khurana stresses the importance of portfolio realignment and a bottom-up approach to stock selection in the first half of the year, allowing for flexibility as macroeconomic conditions evolve.