Views on Morning Market 08th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Views on Morning Market 08th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Emerging positive and negative news have the potential to keep the market volatile in the near-term. Robust economic growth and indications of earnings growth revival are supportive of markets. The massive fiscal and monetary stimulus to the economy this year has contributed to sharp revival in GDP growth as evidenced by the 8.2% Q2 GDP growth print, and RBI’s upward revision of FY 26 GDP growth to 7.3% augurs well for the market. Low GDP deflator, consequent to low inflation, has impacted nominal GDP growth and corporate earnings growth. But from the leading indicators it is clear that about 15% earnings growth is achievable in FY 27. This is positive for the market. However, there are strong negatives, too, which can impact the market. Sustained depreciation of the rupee has been forcing FIIs to sell in the market continuously. Another major factor is the spike in Japanese bond yields which can trigger another bout of reversal of yen carry trade. In brief, there is potential for high volatility.
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