💼 With the ceasefire between Israel and Iran, global markets have shifted to a risk-on mode, reflecting improving sentiment. However, since the reciprocal tariff issue is still unresolved, a sustained rally may face some hurdles.
💼 The near-term market focus will revolve around developments leading to July 9th, when the 90-day pause on reciprocal tariffs ends.
💼 Positive news on a potential India-US trade deal would act as a powerful catalyst for the Indian markets.
💼 On the flip side, any disappointment on this front may temporarily limit the rally, keeping the market range-bound.
💼 FIIs may look to book profits, considering that Indian valuations are stretched at over 22x FY26 earnings, compared to the more attractive 15x for Chinese stocks (Hang Seng). This valuation gap may briefly revive the ‘Sell India, Buy China’ strategy among some FIIs.
💼 However, strong DII liquidity, driven by robust SIP and retail inflows, will absorb any FII selling pressure with ease. This strong domestic demand for equities will continue to impart stability and resilience to the market, keeping it well-supported on dips.
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Posted on : 26 Jun 2025 9:47 AM
