One of the important risks to the macro environment this year is rupee depreciation and its impact on CAD, says Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life. She highlights the volatility in the markets due to various announcements by regulators and the electoral bond issue. She also discusses the valuations of small and midcaps and recommends a stock-specific approach with a preference for quality companies. Dr. Tandon is positive about the Indian markets in FY25, citing election-led spending and ongoing domestic capex momentum. She identifies sectors such as industrials, banks, power, and real estate as attractive investment opportunities. She believes that the semiconductor trend and the growing popularity of SIPs present further investment prospects. However, she advises investors to carefully evaluate factors such as performance history and risk tolerance.