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Below the Quote on Morning Market Views 26th June 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"With ceasefire between Israel and Iran, globally markets are in a risk-on mode. But since the reciprocal tariff issue remains to be addressed, sustained rally would be difficult. The market focus in the near-term will be on what transpires around July 9th when the 90-day pause of the reciprocal tariff ends. Which countries will succeed in negotiating bilateral trade deals with US will be keenly watched. Positive news on a potential India-US deal will be a shot in the arm for the market. Disappointment on this front will constrain the rally. 
FIIs are likely to press selling in the market since Indian valuations have got stretched at above 22 times estimated FY 26 earnings while the PE for Chinese stocks ( Hang Seng Index) is around 15. This kind of differential in valuations may revive the ‘Sell India, Buy China’ strategy of the FIIs. However, since DIIs are sitting on huge liquidity, the potential FII selling is likely to have negligible impact on the market."

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