IGI Logo

Below the Quote on Morning Market Views 20th Aug 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The three-day 364-point rally in the Nifty came in response to the unexpected announcements relating to GST reforms which are likely to happen before Diwali. The market has been responding to the potential demand boost to sectors like automobiles, FMCG, insurance and select financials which are expected to benefit from the GST rationalisation. Improvement in India-China relations also have contributed to the rally. However, there is no scope for a sustained rally since the August 27th deadline for the 25% secondary tariff on India is fast approaching, and the news coming from the Trump administration is not positive. President Trump’s tariff policy, totally devoid of logic and fairness, and driven solely by personal likes and dislikes, may continue. This will have negative implications for India in the short-term, and the market will have to discount that, too. 

In the short-term, investors may focus on domestic consumption themes like banking and financials, telecom, hotels, healthcare, automobiles and cement, particularly the fairly valued segments."

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