Indian stock markets have remained surprisingly steady despite global geopolitical tensions, and company earnings are now becoming the biggest factor influencing share prices, according to Abhishek Basumallick of Shree Rama Managers.
He said the market has largely avoided sharp reactions to international events over the past few months. Instead, investors are paying more attention to quarterly results and future business outlooks shared by company managements. As the earnings season gathers pace, sectors and individual stocks are likely to move based on financial performance rather than global headlines.
Basumallick is optimistic about the market's medium-term outlook. While many expect returns of around 10%, he believes Indian equities could deliver stronger gains over the next 18 months to two years. He added that mid- and small-cap stocks may outperform large-cap companies during this period.
For investors, he said it is always a good time to invest in equities, provided they have a long-term investment horizon of at least five years. He noted that the market has seen limited overall gains during the past one-and-a-half to two years, which could create room for better returns ahead.
Commenting on the draft CAFE-III fuel efficiency norms, Basumallick said the government's policy direction clearly supports lower fuel consumption and a gradual shift towards electric vehicles through stronger incentives and improved charging infrastructure.
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