CLSA isn’t sugar-coating it—2025 might be a bumpy ride for the Nifty. Global uncertainties and India’s near-term economic slowdown set the stage for muted returns, with stretched valuations and lagging capex spending adding fuel to the fire. The firm’s game plan? Lean into affordable consumption. Staples are the new heroes, as CLSA goes big on Tata Motors, NTPC, Nestlé, and Britannia, while scaling back its love for banks by booting out HDFC Bank and trimming its overweight stance on the sector. Commodities and insurance remain darlings, while IT, discretionary, industrials, and healthcare get the cold shoulder. Adding a global twist, Trump’s potential trade policies could rattle export-heavy markets like China. If his stance softens, emerging markets might rally, leaving India trailing. But harsher measures could play to India’s strengths. Back home, with inflation easing, the Reserve Bank of India is paving the way for rate cuts, though lofty bond and rupee valuations might spoil the party. Valuation jitters persist, as Indian equities still trade at a premium to peers. Yet, government welfare splurges and favorable weather may lift rural incomes, nudging affordable consumption into recovery mode. Large-cap consumption stocks are already looking more appealing after shedding their hefty premiums, unlike their capex counterparts. Post-correction, CLSA flagged over 30 NSE 200 companies that have tumbled 20%+ from their peaks but still boast promising outlooks. Tata Motors makes the list, its 35% dip baking in risks tied to Jaguar Land Rover and the commercial vehicle slowdown. NTPC is another favorite, with its recent price drop seen as an entry point to ride upcoming capacity expansions. Nestlé and Britannia are also back in the spotlight, bolstering the portfolio’s resilience amid global turbulence. But the shake-up came at a cost—CLSA’s portfolio underperformed the Nifty by 4.1% last quarter, even if it’s still up a jaw-dropping 186.7% since 2021, miles ahead of the Nifty’s 77.3%. In short, CLSA is playing defense, betting on staples to weather the storm while keeping one eye on capex recovery.