De-escalation along Indo-Pak borders, fresh tariff talks between China & USA spark optimism of smoothing global trade tensions

It does not require any rocket science to understand that the ongoing tensions between India and Pakistan are likely to dominate investor sentiment in the coming week, creating a cautious undertone in Indian equity markets.

- RITWIK MUKHERJEE

Any escalation along the border or strong diplomatic developments could lead to uncertainty. Alongside geopolitical concerns, the ongoing Q4 corporate earnings season will continue to drive stock-specific action.

Further developments on both geopolitical and corporate fronts will play a crucial role in determining the market direction. The process has started already. For instance, the Indian stock market traded higher on Monday, driven by a wave of favorable geopolitical developments that have underpinned overall investor optimism.