💼 After the sharp market correction triggered by Trump’s reciprocal tariffs and the Pahalgam terror strikes, April has closed with above 4% gains in Nifty. This surprising resilience of the market has been primarily driven by the sustained FII buying for eleven trading days in a row, taking the cumulative FII buying for this period to ₹37,375 crores.
💼 FII buying has been driven by weakness in the dollar and declining growth prospects in the US. Other macros like declining interest rates in India, decline in the crude price, and green shoots of pick-up in demand are positives for the market.
💼 The high probability of India, among the five ‘allies’ of the US, entering into early trade deals with the US is also a significant positive factor. However, at the current juncture of high valuations (Nifty trading at above 20 times estimated FY26 earnings) and high India-Pak tensions, the near-term risk-reward is not in favour of high reward. Therefore, investors can play it safe by increasing the cash component in the portfolio even while remaining invested.
.
.
.
#StockMarket #Inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #Inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets
Posted on : 02 May 2025 9:40 AM
