💼 The market structure favours continuation of the ongoing consolidation phase. 💼There are global headwinds like renewed tariff concerns that will restrain a breakout rally. At the same time, there are domestic tailwinds that will support the market at lower levels.
💼 President Trump’s 50% tariffs on steel and aluminium is a clear message that the tariff and trade scenario will continue to be uncertain and turbulent. This headwind will impact markets.
💼 On the domestic front, the tailwinds are getting stronger with the latest Q4 GDP growth data coming at 7.4%, which is much better-than-expected.
💼 Trends in consumption expenditure and capital expenditure are promising. This, along with low inflation and the expected continuation of the rate cutting policy, provides the perfect setting for sustained economic growth in FY26.
💼 The only challenge is the tepid earnings growth.
💼 If leading indicators suggest a recovery in earnings growth, there is a high probability of the market breaking out of the present range and moving higher.
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Posted on : 02 Jun 2025 9:54 AM
