Despite the short-term sell-off, the combination of strong macro fundamentals, robust earnings growth, and attractive valuations makes this an important period for investors to focus on the long-term opportunity. Fiscal deficits are under control, tax cuts are expected to boost consumption, inflation is low at 4.31 per cent, and rate cuts have started, which should support economic growth. The agriculture sector posted steady growth in Q3, indicating a likely improvement in the kharif crop, which could support rural consumption. India’s Q3 FY25 GDP data met expectations, with a slight upward revision to 6.5 per cent for the fiscal year. The economic growth rate for 2023-24 has been revised to a 12-year high of 8.2 per cent in the third quarter (October-December) of 2024-25, up from a revised figure of 5.6% in the second quarter of the financial year. In the near term, market conditions are expected. to remain weak with a gradual recovery anticipated as earnings improve from Q1 FY26 and global trade policy uncertainties subside, said Vinod Nair, Head of Research, Geojit Financial Services.
