As 2025 approaches its end, veteran investor Nilesh Shah of Kotak Mutual Fund took to social media to share a perspective that blends market wisdom with numerical fascination. Moving beyond typical discussions of returns and volatility, Shah focused on the calendar year itself, presenting a compelling case for its mathematical uniqueness.
The Numerical Elegance of 2025
In a detailed post on platform X, Shah argued that 2025 stands apart as a mathematical curiosity. He noted that while we experience many calendar years, few possess the inherent numerical elegance of 2025. His observations highlight several rare properties that make the year a standout figure.
First and foremost, 2025 is a perfect square, as it is the result of 45 multiplied by 45. This characteristic alone makes it uncommon among calendar years. However, the symmetry goes deeper. Shah pointed out that 2025 can also be expressed as the product of two other squares: 9 squared (81) multiplied by 5 squared (25).
Adding another layer to its intrigue, the number can be broken down as the sum of three distinct squares: 40 squared (1600), 20 squared (400), and 5 squared (25). Perhaps the most striking revelation was that 2025 equals the sum of the cubes of all single-digit numbers from 1 to 9. When you cube 1, 2, 3, and so on up to 9, and add the results together, the total is precisely 2025.
A Cautious Outlook for 2026 Markets
Shifting from mathematics to markets, Shah provided Kotak Mutual Fund's annual outlook for 2026. He suggested that after a volatile 2025, Indian stock market investors should brace for a more moderate phase. While he expects returns to stay positive in the coming year, he advised recalibrating expectations after the exceptional performances witnessed in recent times.
Shah noted that fiscal policy is now the primary driver of global growth, as monetary support from central banks begins to recede. Although interest rate cuts are in progress, the conditions that fueled previous market rallies have lost some strength. Global growth is likely to remain positive but may slow down slightly in calendar year 2026 compared to 2025.
Key Risks and Domestic Opportunities
The market veteran flagged several potential headwinds for the new year. These include persistent inflation, rapid technological disruption, the ongoing debate around de-dollarisation, advancements in artificial intelligence, and the strategic rivalry between the US and China.
On the domestic front, Shah offered a nuanced view. He observed that while headline indices like the Sensex and Nifty are near record highs, many individual stocks remain well below their peak levels. He also addressed corporate earnings, noting that large-cap company profits have been subdued over the past six quarters. However, he anticipates an improvement in the earnings trajectory ahead.
Shah's reflections serve as a reminder of his long-standing investment philosophy, which emphasises long-term thinking, patience, and maintaining perspective—qualities especially relevant as one year transitions into the next.
Disclaimer: The views and recommendations expressed are those of the individual analyst and not of Mint. Investors are advised to consult certified experts before making any investment decisions. This report is based on user-generated social media content and has not been independently verified by Livemint.
