Mar 2025 Equity market outlook

 Indian equity market sentiments seems improving. Few lead Investors/ Advisors who were sitting on 30% cash (70% to equity), have now deployed 90% cash into equity market. Will have to await the earnings season though if this marks the start oof next bull run.


Earnings - September quarter Profits/ Earnings growth were just 4.4%
December quarter profits improved to 14%
March quarter should improvise further is our gut feel. Most companies who can take controllable actions should have done their job from November/ December. Now its time to reap the benefits.
If we see the profit growing 16% or higher, it's great sign.

Geo Political tensions. Recent US announcement of customs duty doesn't seem to be taking strong stance. Even if implemented its good in a way for rest of the world.
Would like to recall a leading IT company in India which had huge dependency back in 1994 with one large corporate. It helped them learn how a dependency can be exploited to squeeze out almost everything out of you. One cannot afford to lose such large business, if they do not take counter measures to commensurate or improvise.
Once that's done, you can decide if efficiencies meet the expectation or let go such non profitable business. Now most smart leaders would either start diversifying geographies or take counter measures / cut down the cost. Cost reduction for now would reduce the duty effect and not pass 100% duty/ taxes on end selling price. When the tax is reversed profitability would shoot up because of the measures taken. Either ways growth is not stopped and good news in long run is bound to happen.

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