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Below the Quote on Market by Krishna Appala, Sr. Research Analyst, Capitalmind Research

“The market extended its negative trajectory, with the Nifty 50 down 7.8% from its recent peak. On a weekly basis, the Nifty 50 was up by 0.3%, while the CNX Midcap rose by 1.3%, and the CNX Smallcap declined by 1.1%. India’s inflation edged up to 5.49%, mainly due to rising vegetable prices, while core inflation remains low at 3.57%. Credit growth is slowing, with a significant drop in unsecured lending, particularly in credit cards. Bank lending to NBFCs is tightening, although loans against gold surged by 51% year-on-year. Foreign portfolio investors sold over ?1 lakh crore in equities in October and are continuing their selling in November as well, adding to caution in the market.
Trump’s re-election signals potential shifts in global trade. His focus on raising tariffs could impact India, particularly in automobiles, diamonds, and electronics, although trade volumes remain relatively small. Trump’s emphasis on automation may offer India opportunities in automated manufacturing, helping sidestep restrictive labour laws. Easing trade tensions could improve India’s competitiveness in key sectors. Additionally, this election underscored the growing influence of digital and social media narratives, reshaping public opinion. The U.S. Federal Reserve’s 25 basis point rate cut to 4.5%, the second this year, is part of a broader easing trend. It’s likely that the RBI will soon follow suit. Combined with continued selling pressure and earnings downgrades, market valuations are cooling, offering investors a strategic opportunity to accumulate high-conviction stocks as the market works through this correction phase.
Volatility, though uncomfortable in the short term, is a necessary part of achieving strong financial results. Markets cannot rise indefinitely in one direction, and sustained rallies are not sustainable. Investment returns follow a cyclical pattern, and as investors, it's crucial to manoeuvre through these cycles, endure the declines, and take advantage of the recoveries. Over time, the ability to withstand the downturns and excel during the upswings is what drives long-term success. Accepting volatility as a natural part of the market journey is key to thriving in the long run.”

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