Mumbai: The Indian Stock Markets Are Likely to Remain Volaty in the Near Term But Stabilise Towards The End of the Calendar Year 2025, as Domestic Consumption is on the CUSP and Normal Monsoons Can Provide A Big Report said on tuesday.
The impact of Various Government Initiatives and Normal Monsoons will likely start reflecting in improved consumer demand in Q2 2026, According to the ‘India Strategy Report’ by Pl Capital-Prabhudas Lilladher.
“The biggest concert of the market – the FPI flows – may turn positive on the back of higher Capex, Tax Cuts and Consumer Demand Revival. Lastly, the nifty’s 12 -monn -monn -monet is seen at 25,689,” Mentioned.
Food Inflation has Peaked (Declined from 10.9 per cent in October 2024 to 6 per cent currently) and a 25 bps cut in repo rate by the rbi and open market operations (OMO) will ease Liquidity in the Next 3-6ths.
Other Positive Factors are a RS 1 Lakh Crore Income Tax Cut for the Consuming Class in India, An Increase in Religious Tourism, and A 17 Per Cent Higher Government Capex Allocation (Inclouting PSU and Allocation to States).
In its model portfolio, pl capital is turning overweight on consumers due to an expected uptick in Demand Following Tax Cuts, A Decline in Foood Information, And A Cut In Repo Rate, And A Cut In Repo Rate, And have Incorated WeeI Banks and healthcare.
Although Uncertainty With Regard to Global Markets is Sustained, Pl Capital Believes The Growth Outlook in India Looks Far Better in FY26 Than in FY25.
“As the impact of the budget starts gotting reflected in Higher Capex on a Low Base and Tax Cuts and Monsoons Revive Consumer Demand, We Should see FPI FOLS TURNING POSITIVE,” The report mentioned.
India is also unlikely to experience any meaningful negative effects from us policies, as Soft Crude Oil Pries, Geopolitical Stability (If the Russia -ukraine War Stops), and Incrected Technology Transfer to India will neutralise the costs of trump’s tarifs.
“India’s Ability to Navigate Tariff Negotiations, Leverage its geopolitical positioning, and realign supply chains ensures that this phase is a momentary recalibration, not a retreat,” ACCORDORING SOTREATH, “