Seasoned investors are prioritizing bottom-up stock selection over broad themes amid market consolidation. Vikas Khemani highlights constructive views on PSU banks and IT services, emphasizing long-term earnings growth and valuation comfort. He expects improved foreign investor flows as global conditions evolve, potentially leading to a market rerating.
Veteran market participant Vikas Khemani anticipates a constructive phase for Indian equities in the coming year, driven by converging factors of earnings growth, valuation comfort, and policy support. He believes the market is poised for a rebound after a period of consolidation, with banking, financial services, and consumption-led themes expected to lead the charge.
India is poised for a significant economic year in 2025, with real GDP expanding at an 8.2% rate in Q2 FY25-26, a six-quarter high. Inflation remained low, with CPI softening to 0.71% in November, while unemployment dropped to 4.7%. Strong export performance and robust foreign exchange reserves further bolster the economy, now the world's fourth-largest.
Investors navigating global and Indian markets benefit from understanding fundamental and technical analysis. Fundamental analysis identifies strong companies for long-term growth, while technical analysis helps optimise timing in volatile markets. High-net-worth individuals can combine both approaches to enhance portfolio performance and manage risks effectively.
Indian government bonds traded narrowly as a large state debt supply and fading risk appetite weighed on the market. The benchmark 10-year yield hovered near 6.60% amid a widening liquidity deficit, despite the RBI's bond purchases. Traders anticipate a heavy fourth-quarter debt calendar, potentially setting a record high.
Shares of MMTC Ltd fell 4.88% to Rs 67.21 on Tuesday as gold and silver prices retreated from recent highs. The government-owned bullion traders performance is closely linked to precious metal trends, with profit-taking and year-end volatility contributing to the stocks decline, despite a morning rebound in metals.
Crypto markets dip over 2% amid thinning year-end volumes, with Bitcoin trading near $87K and Ethereum at $2,952. Analysts cite macro caution, technical resistance, and profit-taking in precious metals. Altcoins face mixed movements, while global liquidity signals keep crypto in consolidation ahead of 2026.
The Indian Rupee saw a slight gain against the US Dollar in early trade today. Strong industrial production data provided support. However, foreign investor selling and rising crude oil prices limited the appreciation. The domestic stock markets also opened lower, influencing currency movements. The Rupee had closed lower on Monday.
Usage of the US Federal Reserves standing repo facility rose sharply to nearly $26 billion, signalling increased demand for short-term liquidity ahead of quarter-end. Elevated borrowing suggests tighter private funding conditions, while a decline in reverse repo usage points to shifting liquidity dynamics in money markets.
