Quote on Morning Market Views 13th Aug 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Quote on Morning Market Views 13th Aug 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
"The significant recent underperformance of the Indian market deserves a close look. Nifty has been setting new lows consecutively for the last six weeks while most other markets -developed and emerging- are doing well. This underperformance is despite the massive DII buying aided by robust inflows into mutual funds. In August, so far, FIIs have sold equity for Rs 18620 crores through the exchanges. This FII selling has been completely eclipsed by the massive DII buying of Rs 46272 crores. Yet Nifty has drifted down from 24768 to 24487. Why? Trump’s harsh tariffs and the straining of relations between US and India have impacted the market sentiments and, consequently, shorts have piled up pulling the market down. The tepid earnings growth, elevated valuations and modest projection of 8 to 10% earnings growth for FY26 have emboldened the bears to increase the short positions. A sudden reversal of sentiments can lead to short covering and sharp recovery in the market. The Trump-Putin talks may provide a positive trigger but there is no certainty about it.
This is the right time for asset allocation. Investors with a long-term investment horizon of 3 years and above can accumulate fairly valued largecaps in banking, telecom, capital goods, aviation and select midcap IT. The risk-reward in these segments is favourable for investment."
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