Year-end signals opportunity

I 'ndian markets opened CY2025 with a cautiously optimistic outlook, recommending a diversified multi-asset strategy emphasizing large-cap equities, select sectors, precious metals, and debt, according to a research by Geojit Investments on Wednesday.

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Caution stemmed from India's premium valuation, downgrade in domestic earnings and rising uncertainty around 'Trumponomics' as negotiation tactics intensified, pushing India from a favorable position to the highest tariff during the year. Optimism, however, was anchored in the absence of recessionary risk.

Points to ponder

Geopolitical risks escalated due to Indo-Pak and Israel-Hamas conflicts.

Gold and silver emerged as the topperforming assets in CY25, driven by USD depreciation after tariff hikes and the Fed's halt of quantitative tightening.

FIIs shifted to other EMs amid India's premium valuations and lack of AI opportunities, triggering record INR depreciation due to heavy outflows and a widening trade deficit by the later part of the year.