thefiscalalchemist
KF Rookie
The recent downturn in the Indian stock market, with broad indices dipping by 9-10%, has left many investors cautious. Domestic fund houses are holding substantial cash reserves of โน3.7 lakh crores, amounting to 5.6% of their AUM.
๐ ๐ฎ๐ท๐ผ๐ฟ ๐๐ฎ๐ฐ๐๐ผ๐ฟ๐ ๐๐ฒ๐ต๐ถ๐ป๐ฑ ๐๐ต๐ฒ ๐๐ผ๐ฟ๐ฟ๐ฒ๐ฐ๐๐ถ๐ผ๐ป:
๐๐น๐ผ๐ฏ๐ฎ๐น ๐๐ฐ๐ผ๐ป๐ผ๐บ๐ถ๐ฐ ๐ฅ๐ผ๐น๐น๐ฒ๐ฟ๐ฐ๐ผ๐ฎ๐๐๐ฒ๐ฟ: The past few months have been a whirlwind for the global economy. Ongoing conflicts, economic slowdowns in major markets like the US, EU, and China, and a volatile Indian rupee have contributed to an uncertain landscape.
US Federal Reserve's Hawkish Stance: The US Federal Reserve's cautious outlook on future rate cuts has dampened market sentiment globally.
Rupee Depreciation: The Indian rupee hit a historic low of 85.34 per dollar, making Indian equities less attractive to foreign investors.
๐ฅ๐ฒ๐ฐ๐ผ๐ฟ๐ฑ ๐ฆ๐ฒ๐น๐น๐ถ๐ป๐ด ๐ฏ๐ ๐๐๐๐: Foreign investors have withdrawn funds, influenced by geopolitical events, including the re-election of Donald Trump.
๐ช๐ฒ๐ฎ๐ธ๐ฒ๐๐ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด๐ ๐ฆ๐ถ๐ป๐ฐ๐ฒ ๐ฎ๐ฌ๐ฎ๐ฌ: Top Indian companies reported their weakest quarterly earnings since 2020, with over half of Nifty 50 companies missing analysts' estimates. Sectors like auto, consumer durables, and banking were particularly affected by weak consumption demand.
๐๐ผ๐๐ฒ๐ฟ๐ป๐บ๐ฒ๐ป๐ ๐ฆ๐ฝ๐ฒ๐ป๐ฑ๐ถ๐ป๐ด ๐๐๐๐: To control inflation, the government has reduced spending, potentially slowing down the market.
๐ช๐ต๐ฎ๐'๐ ๐๐ต๐ฒ๐ฎ๐ฑ ๐ณ๐ผ๐ฟ ๐๐ป๐๐ฒ๐๐๐ผ๐ฟ๐?
The current market volatility is expected to continue in the short term, prompting investors to remain cautious. Despite these challenges, there is optimism for a recovery in the last quarter of the year, driven by increased rural spending, a vibrant wedding season, and higher government expenditure. There is an expectation of money flowing back into the Indian market in the coming months, leading to positive changes. Investors should remain alert and recognize opportunities.
What do you think about the markets returns in 2025?
๐ ๐ฎ๐ท๐ผ๐ฟ ๐๐ฎ๐ฐ๐๐ผ๐ฟ๐ ๐๐ฒ๐ต๐ถ๐ป๐ฑ ๐๐ต๐ฒ ๐๐ผ๐ฟ๐ฟ๐ฒ๐ฐ๐๐ถ๐ผ๐ป:
๐๐น๐ผ๐ฏ๐ฎ๐น ๐๐ฐ๐ผ๐ป๐ผ๐บ๐ถ๐ฐ ๐ฅ๐ผ๐น๐น๐ฒ๐ฟ๐ฐ๐ผ๐ฎ๐๐๐ฒ๐ฟ: The past few months have been a whirlwind for the global economy. Ongoing conflicts, economic slowdowns in major markets like the US, EU, and China, and a volatile Indian rupee have contributed to an uncertain landscape.US Federal Reserve's Hawkish Stance: The US Federal Reserve's cautious outlook on future rate cuts has dampened market sentiment globally. Rupee Depreciation: The Indian rupee hit a historic low of 85.34 per dollar, making Indian equities less attractive to foreign investors. ๐ฅ๐ฒ๐ฐ๐ผ๐ฟ๐ฑ ๐ฆ๐ฒ๐น๐น๐ถ๐ป๐ด ๐ฏ๐ ๐๐๐๐: Foreign investors have withdrawn funds, influenced by geopolitical events, including the re-election of Donald Trump. ๐ช๐ฒ๐ฎ๐ธ๐ฒ๐๐ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด๐ ๐ฆ๐ถ๐ป๐ฐ๐ฒ ๐ฎ๐ฌ๐ฎ๐ฌ: Top Indian companies reported their weakest quarterly earnings since 2020, with over half of Nifty 50 companies missing analysts' estimates. Sectors like auto, consumer durables, and banking were particularly affected by weak consumption demand. ๐๐ผ๐๐ฒ๐ฟ๐ป๐บ๐ฒ๐ป๐ ๐ฆ๐ฝ๐ฒ๐ป๐ฑ๐ถ๐ป๐ด ๐๐๐๐: To control inflation, the government has reduced spending, potentially slowing down the market.๐ช๐ต๐ฎ๐'๐ ๐๐ต๐ฒ๐ฎ๐ฑ ๐ณ๐ผ๐ฟ ๐๐ป๐๐ฒ๐๐๐ผ๐ฟ๐?
The current market volatility is expected to continue in the short term, prompting investors to remain cautious. Despite these challenges, there is optimism for a recovery in the last quarter of the year, driven by increased rural spending, a vibrant wedding season, and higher government expenditure. There is an expectation of money flowing back into the Indian market in the coming months, leading to positive changes. Investors should remain alert and recognize opportunities.
What do you think about the markets returns in 2025?
