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

The standout feature of 2025 has been India’s stark underperformance compared to most developed and emerging markets. This underperformance is set to change in 2026 supported by solid fundamentals: India’s macros are in Goldilocks setting with robust economic growth and stable financial construt. The more important factor from the market perspective-earnings growth- is set to recover from Q3 FY26 onwards. 
Even though these are favourable factors, these are not sufficient to trigger a rally soon. A strong rebound in the market  needs a trigger like a US- India trade deal with favourable tariffs for India. There is no clarity yet on when this will happen. Therefore, a consolidation phase is likely in the near-term, and investors can utilise this consolidation phase to slowly accumulate high quality stocks giving priority to largecaps.

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