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Below the Quote on Morning Market Views 29th August 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"A significant takeaway from the market trend yesterday is that despite the big buying of Rs 6920 crores by DIIs, overwhelming the FII selling of Rs 3856 crores, Nifty drifted down by 211 points. The reason for this important market trend is the increasing short build up by the FIIs. The negative sentiments in the market triggered by the 50% Trump tariff and the high valuations in India has encouraged the FIIs to increase their short positions. 

September series historically has been known for big moves. A quick decision on the tariff policy can lead to reversal of sentiments and short covering. We don’t know whether this will happen. 

The policy initiatives in India - the fiscal stimulus through the Budget, monetary stimulus through rate cuts and the coming GST rationalisation- should revive economic growth and corporate earnings in India in the coming quarters. That is when we will have a fundamentally supported rally in the market. Investors can utilise the dips in the market to buy fairly-valued stocks and wait patiently in anticipation of the rally."

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