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Below the Quote on Markets by Avinash Agarwal, Senior Vice President & Head - Equity at Bandhan Life

“Markets have remained resilient despite geopolitical tensions and global macro uncertainty, supported by better-than-expected Q1 earnings and healthy performance across large-, mid- and small-cap segments. While volatility may persist due to US bond yields, inflation, crude prices and global developments, corporate fundamentals remain encouraging. After subdued returns in recent years, valuations and earnings offer a reasonable starting point for medium- to long-term investors.

Domestic institutional investors (DIIs) have remained consistent equity buyers, providing strong domestic support. Foreign institutional investors (FIIs), after a prolonged selling phase, have shown early signs of returning, with incremental buying in July and August. While flows remain modest, the stabilisation is encouraging and could strengthen if global capital flows rotate back towards India.

Gold continues to gain strength on a softer US dollar, concerns over elevated US debt and renewed central-bank buying, reinforcing its safe-haven appeal. Silver is also supported by dollar weakness and a constructive commodity environment.

Overall, the combination of resilient earnings, supportive domestic flows and attractive opportunities across market segments reinforces our constructive long-term outlook, while a diversified approach remains key to navigating near-term volatility. We remain selectively positive on equities, with a diversified multi-cap approach offering flexibility to capture opportunities across market cycles.” Hoping you can consider it.

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