Views on Morning Market 24th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Views on Morning Market 24th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
As 2025 draws to a close the market appears to be moving to a consolidation phase with an upward bias. The strong domestic macros and the supportive earnings growth expectations in Q3 and Q4 of FY26 and for FY27 will provide the fundamental support to the market. The sustained domestic inflows and consistent DII buying will impart resilience to the market. However, since FIIs may sell the rallies, a sharp breakout is unlikely. Also, the revival of the AI trade in US might impact sentiments in favour of a ‘non-AI trade’ in markets like India.
The RBI decision to do an additional OMO to the tune of Rs 2 lakh crores will significantly enhance liquidity and bring down yields. This is positive for credit growth and banking stocks.
This can be a shot in the arm for banking stocks which are fairly valued.
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