Geopolitical tensions, a change of guard in the US; China’s easing policies, continued FII outflows and a resultant slowdown in growth. These are all factors that have been defining the Indian markets the last quarter of 2024. A slowdown in the Indian markets were visible starting September 2024, even as the government’s cash balance dropped to a deficit of INR 458 billion during the first week of December 2024. On one side, the annual GDP slowdown to 5.4% (as of November 2024) came as a shocker to the markets. But 2025 looks like it’s positioned differently in more than one…

Indian benchmarks surged to new record highs during the month of September, driven by strong FII selling and fueled by optimism over interest rate cuts from major global economies. Investor sentiment continues to remain strong even as Chinese policymakers unveiled a raft of new measures aimed at reviving the stock markets, together with an easing of monetary policy and bringing greater stability to the property markets. The forthcoming months of the year are likely to put a spotlight on the global state of the economy, as multiple nations including the US enter the elections phase. With Interest rates on the…

The Indian economy has been witnessing significant growth owing to multiple factors ranging from the government’s increased capex growth, the China +1 strategy and the resilience of the country’s domestic demand situation. On a relative basis, a favorable interest rate versus growth rate differential benefits India, even as domestic demand and consumption contributes significantly. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index™ (PMI) climbed to a 16-year high of 59.1 in March 2024, from 56.9 in February 2023. Growth quickened across the consumer, intermediate and investment goods sectors. On a relative basis, India continues to have the highest PMI…

The FED kept interest rates stable for a fifth time in a row. Despite inflation showing a significant downward trend, the FED’s decision to maintain rates stable comes backed by the fact that they want to time their rate cuts in a manner that encourages inflation numbers to go down to their target of 2%. While Powell indicated that it seems uncertain as to when the US will achieve the inflation target, it is something that they are sure to achieve. It’s interesting to note that January and February witnessed higher CPI (Consumer Price Index) and PCE (Personal Consumption Index)…

India’s growth trajectory continued in a positive direction during the month of February 2024, with India’s stock market setting the stage for a compelling narrative of resilience, adaptability, and opportunity. For instance, Auto component exports are expected to grow and reach US$ 30 billion in FY26. This growth is further supported by a 100% FDA investment in the auto components sector. India is also the 2nd largest producer of steel globally and this bodes as a huge advantage for related businesses that use steel as a raw material. Within the Financial domain, the growth of Fintech’s, the cleaning up of…

From the Chang Mai Lantern Festival in Thailand, the Blackpool Christmas Lights in England and the Niagara Falls festival of lights, November is a month that marks festivities and celebration, largely connected to lights. In India too, Diwali is a festival of lights that is celebrated with a lot of fervor across the country. It’s a month that brings in the warm fuzzy feeling as we inch closer towards Christmas and the end of another stupendous year. This sentiment of positivity is reflected across global markets especially as there have been signs of economic activity expanding across the globe. Disinflation,…