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Quote on Morning Market Views 15 July 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"Market is in a state of drift with no clear indications of a sharp change of course. FIIs who have been net buyers in April, May and June have turned net sellers in July as per the latest data. This has put pressure on largecaps. Absence of institutional selling in the broader market is keeping this segment resilient despite the elevated valuations. 

Alongside selling in the cash market FIIs have increased shorts in the derivative market. Short covering can lead to sharp recovery in the market. But there are no apparent triggers in sight that can lead to short covering. 

A significant macro trend is the decline of CPI inflation in June to 2.10 percent. It appears that inflation will undershoot RBI’s projection of 3.7% CPI inflation for FY26. This has raised rate cut hopes. But the question is: can another 25 bp rate cut stimulate credit growth which is languishing at around 9 %?"

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