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Below the Quote on Morning Market Views 04th Aug 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"In the near-term the market is in unchartered territory. A clear direction will emerge on news surrounding the US-India trade deal happening after the next round of trade negotiations. A deal with a tariff of 20% or below will be positive from the market perspective. If this doesn’t happen, and the 25% tariff remains, the market is likely to drift down since it will impact India’s growth and corporate earnings making it difficult to justify the current elevated valuations. 

From the global market perspective, indications are that a rate cut from the Fed in the September FOMC meeting is likely after the latest jobs report indicating declines in job additions in July and downward revisions in the jobs created in May and June. Clearly, the U.S. economy is slowing down and Fed is likely to respond  with a rate cut in September. With the inflationary impact of the tariffs kicking in, a stagflationnary scenario for the US cannot be ruled out. The market will respond to incoming data and evolving outlook."

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