<p>Bengaluru: The bearish sentiment in the stock markets is likely to be reversed as domestic consumption recovers on back of an anticipated normal monsoon, brokerage and investment management firm Prabhudas Lilladher Capital said onTuesday. </p>.<p>PL Capital expects demand recovery on the back of easing food inflation, the recent budget tax cuts and the rate cut by the Reserve Bank of India (RBI). However, markets are expected to remain volatile in the near-term with stability expected towards the end of calendar year 2025. PL Capital has set a 12-month Nifty target of 25,689. Foreign Portfolio Investment (FPI) flows - one of the biggest concerns of the market, is also expected to turn positive on the back of higher capex, tax cuts and consumer demand revival. </p>.'Indians spending less time on self-care': Survey.<p>FIIs have pulled $20.2 billion from Indian equities and bonds since October 2024, marking one of the steepest outflows in recent history. PL Capital sees no meaningful impact of Trump’s tariff wars. Softer crude oil prices, geopolitical stability (If the Russia-Ukraine war stops), and increased technology transfer to India may neutralise the costs of Trump’s tariffs, it said in a report.</p>.<p>“Even if US tariffs on India rise to 15-20% by April 2025, India’s key export sectors—pharmaceuticals, electronics, jewelry, and textiles will operate within low tariff differentials, which reduces exposure to tariff escalation. India’s exports are mitigated by a highly diversified export base by new trade routes through Europe and the Middle East (IMEC),” it said.</p>.<p>While tariff negotiations will remain a short-term market overhang, the structural foundation of India-US trade remains intact, PL Capital added.</p>.<p><br /><br />ReplyForward</p>
<p>Bengaluru: The bearish sentiment in the stock markets is likely to be reversed as domestic consumption recovers on back of an anticipated normal monsoon, brokerage and investment management firm Prabhudas Lilladher Capital said onTuesday. </p>.<p>PL Capital expects demand recovery on the back of easing food inflation, the recent budget tax cuts and the rate cut by the Reserve Bank of India (RBI). However, markets are expected to remain volatile in the near-term with stability expected towards the end of calendar year 2025. PL Capital has set a 12-month Nifty target of 25,689. Foreign Portfolio Investment (FPI) flows - one of the biggest concerns of the market, is also expected to turn positive on the back of higher capex, tax cuts and consumer demand revival. </p>.'Indians spending less time on self-care': Survey.<p>FIIs have pulled $20.2 billion from Indian equities and bonds since October 2024, marking one of the steepest outflows in recent history. PL Capital sees no meaningful impact of Trump’s tariff wars. Softer crude oil prices, geopolitical stability (If the Russia-Ukraine war stops), and increased technology transfer to India may neutralise the costs of Trump’s tariffs, it said in a report.</p>.<p>“Even if US tariffs on India rise to 15-20% by April 2025, India’s key export sectors—pharmaceuticals, electronics, jewelry, and textiles will operate within low tariff differentials, which reduces exposure to tariff escalation. India’s exports are mitigated by a highly diversified export base by new trade routes through Europe and the Middle East (IMEC),” it said.</p>.<p>While tariff negotiations will remain a short-term market overhang, the structural foundation of India-US trade remains intact, PL Capital added.</p>.<p><br /><br />ReplyForward</p>
