IGI Logo

Below the Quote on Weekly Market Outlook 21th June 2025 from Vinod Nair, Head of Research at Geojit Financial Services

"The Indian stock market concluded the week on a robust note, shrugging off midweek volatility triggered by escalating tensions in the Middle East and a sharp spike in crude oil prices. Reserve Bank of India’s relaxation of project financing norms, which provided a boost to financial stocks. The RBI’s continued dovish tone—signalling potential rate cuts on validating subdued inflation —further reinforced market confidence, positioning monetary policy as a key stabilizing force amid global uncertainty.

Crude prices surged early in the week due to geopolitical unrest, sparking concerns over inflation. However, the pace of growth in oil prices tapered significantly after the initial spike, helping to ease fears of a sustained inflationary rebound. Investor sentiment toward the pharmaceutical sector has turned cautious following the proposed imposition of new tariffs.

Market anxiety peaked following speculation of U.S. involvement in the Middle East conflict, which threatened to escalate the situation into a broader crisis. However, diplomatic restraint and a decision by global leaders to delay major interventions for two weeks helped soothe investor nerves, allowing markets to stabilize.

With the deadline for a 90-day pause on reciprocal tariffs approaching, markets are closely tracking trade negotiations and deal-making activity expected to unfold over the next two weeks.  Meanwhile, geopolitical uncertainty continues to loom, as statements from world leaders regarding possible military involvement in the Middle East keep markets on edge. Investors will also keep a close eye on upcoming U.S. GDP and PCE data, along with India’s PMI figures, for cues on the strength and direction of economic recovery at home and abroad."

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