Stock market investors should focus on long-term opportunities during this crucial period.

mutual funds, offsetting some of the foreign selling pressure. Anticipating a market bottom is challenging, but excessive negativity often indicates a turning point,” said Krishna Appala of Capitalmind Research.
India’s GDP growth accelerated to 6.2 percent in the third quarter of the 2024-25 fiscal year, up from a revised 5.6 percent in the previous quarter. The estimated GDP growth for the full financial year is 6.5 percent, with the previous year’s economic growth revised to a 12-year high of 8.2 percent. The Q3 FY25 GDP data aligned with expectations and was revised slightly upward to 6.5 percent for the fiscal year. Steady growth in the agriculture sector in Q3 suggests a promising outlook for rural consumption due to potential improvements in the kharif crop.
Key events like the tariff policy, U.S. Core PCE Price Index, and jobless claims will be closely monitored by investors. Short-term market conditions are expected to be weak, but a gradual recovery is anticipated as Q1 FY26 earnings improve and global trade policy uncertainties diminish, as per Vinod Nair, Head of Research at Geojit Financial Services. Market movements are cyclical and not unidirectional in the long run. Additionally, a confluence of favorable fiscal policies supporting capital expenditure and consumption, coupled with easing monetary policies, particularly rates, liquidity, and regulations, and an upswing in robust services exports, are likely to positively impact India’s job market outlook and support economic growth, according to a Morgan Stanley report.