Mkts volatile; mid, small-cap indices decline

This week has indeed been a good one for Indian equity markets as global markets remained supportive following optimism over a potential India-US trade agreement and strong quarterly earnings that is likely to lift investors sentiment.

- Motilal Oswal Team

Record low inflation, consistent SIP inflows of more than Rs 25,000 crore on a MoM basis, and expectation of a cut rate by the Fed in its December meeting are seen as positive signs for the market.

Recently we have seen an IMF report raise India’s FY26 GDP growth forecast from 6.4% to 6.6%, despite the U.S. imposing a 50% tariff, while domestic inflation falling to record low of 0.25%. reflects positive momentum. We have seen US Markets climbing more than 25-30% from April lows and against that our market has underperformed emerging as well developed markets which reflects strong turnaround on cards supported by attractive valuation, strong earnings and return of FIIs.