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Below the Perspective on Markets by Mr. Jaykrishna Gandhi, Head – Business Development, Institutional Equities at Emkay Global Financial Services 

“Tariff and GST reforms will set the near term tone of the markets. The reform aims to boost consumption, reduce inflationary pressure, enhance compliance, and simplify the tax framework—though it may also reduce government revenue (estimated loss up to $20 billion or ~0.4% of GDP). Key consumption sectors—FMCG, electronics, autos, and housing appliances—stand to benefit significantly.

Bear steepening creating some ripples across the asset classes, with 30-yr yields across the globe surging to decadal HIGHS – this is the consequence of multiple things, but more importantly, inflation expectations continue to remain firm and demand for Govt paper amid their ever-widening fiscal deficits seems to have vanished and treasuries themselves are busy QT’ing – definitely a risk for equities.

Precious metal remains the best-in-class asset here, though, USD also seems to be emerging as safe haven just as risk off strikes!!

Gold and Silver have continued to rip, with Gold comfortably above $3500 now extending last 5-days gains to 3.3%/5.8% respectively, pre-empting a rate cut in the upcoming September FOMC, though, the Fed Fund futures are still put only 88% probability of a rate cut.  INR, though, has continued to weaken against the $, slipping past 88 and is now the worst performing currency against $ in ASIA this year!!

Worries on the tariffs and continued capital flows (equities) have kept the INR on tenterhooks. Call it September effect or bottled up VIX, some turbulent ride up here. Technically 24800 and 25300 are the key resistance levels and 23800 remains the key support in the near term. Despite significant promoter share sell-offs (~? 55,000 crore in June 2025, the lowest ownership in eight years), retail investors stepped in to stabilize markets.”

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