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"The domestic market finally closed in the green after weeks of relentless selling, primarily due to a rebound in Q3FY25 GDP and a recovery in consumption. The metal, capital goods, and energy sectors outperformed on account of optimism over China's stimulus and lower crude oil prices. A fall in the dollar index also sweetened investor sentiment towards emerging markets, while the US equity markets have declined due to uncertainty over Trump's economic policies.

On the tariffs front, the long-awaited tariffs were enacted but later backtracked by delaying their implementation, creating uncertainty among investors. Investors will keep a close eye on payroll data and US inflation to get cues on interest rates. The domestic market gradually recovered from its oversold levels; however, a decisive upward momentum will be based on the recovery in corporate earnings and an ease in tariffs uncertainty. The premium valuation of broader indices may restrict a broad-based market recovery in the short run, while large caps appear attractive."

 

 

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