Mint Quick Edit | Equity bounce: The market’s path ahead is hazy
- India’s stock market has begun 2025 on a cheerful note, fed possibly by a spot of good news on the economy. Whether it marks a market upturn is impossible to make out.
India’s equity market has got off to a promising start in 2025, with the BSE Sensex rising 2.3% in just the first two sessions of the year.
Given the market’s recent weakness, optimists hope that the slide in prices over the past quarter has bottomed out. But that may be too early to conclude.
Part of it may be on account of a spot of good news on the economy. December GST revenue showed a 7.3% rise from a year earlier to ₹1.77 trillion.
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Though that’s still off its monthly mop-up peak of ₹2.1 trillion, a respectable year-end number suggests that economic growth in the third quarter of this fiscal year may be markedly faster than in the disappointing second quarter.
That said, increased market volatility in recent weeks would advise against reading too much into how stocks have performed so far in 2025.
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While foreign capital flows matter and the rupee’s exchange value is under watch, long-horizon investors should be tracking corporate earnings.
Although there are signs of improvement in many sectors, uneven business outcomes have weighed upon broader expectations.
Budget triggers may be playing on investors’ minds too, with guesses being hazarded. The path ahead is hazy.
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