IGI Logo

Below the Quote on Morning Market 16th July 2025 by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The market has been oscillating in a narrow range during the last two months. A breakout above the upper band of the range, well beyond Nifty 25500, needs positive triggers. Such a trigger may come from an India-US trade deal with tariffs on India pegged at around 20 percent. If this happens, can it trigger a sustained rally in the market? Unlikely. A sustained rally in the market needs earnings support. There are no signs of a strong earnings support and earnings growth visibility. Two big segments of the market - IT services and consumption, particularly FMCG - are struggling with tepid earnings. There are green shoots of earnings recovery in FMCG but IT services continue to struggle. This means earnings growth for FY26 will be around 10 percent only. This is the biggest challenge being faced by the market now. Therefore, investors can be stock- specific, focusing on stocks where growth prospects and earnings visibility are bright."

Above views are of the author and not of the website kindly read disclaimer