Looking Beyond Moody Markets and Current Uncertainty

 Edited transcripts of some of my responses as a studio guest to questions on the day's headlines in the live radio programme, Market Mantra, on October 10, 2025. Market Mantra is a popular daily programme on business, economy, and stock markets at All India Radio (AIR).

Day’s Market Trajectory

At a time of uncertainty, markets react to whatever information they receive or what they perceive as information. This is often in the form of headlines and reports.

TCS Results and Market Reaction

Markets can behave like moody teenagers and act according to their prevailing mood. There is a narrative in certain sections of the market that Indian IT might have just missed sailing on the AI boom boat, though in the case of TCS, the company is talking of making large data centre investments.

PM Modi-President Donald Trump Phone Call: A Cause for Optimism?

The moment you see an Indo-US trade deal, even if it is a tranche covering low-hanging fruit, markets, especially FPIs, will react positively. You will witness a rush of foreign portfolio inflows, and pressure on the Rupee will ease.

It is worth pointing out that both countries are tough negotiators and have negotiated complex deals like the nuclear deal in the past. If you look beyond the rhetoric, both countries need each other economically. So, the question is not if, but when the Indo-US trade deal will happen.

Prospects of Indo-Australian Defence Partnerships

The key to the growth of the Indian defence sector, both in India and abroad will be how well the sector is opened to private players. This includes start-ups for drones, other aerospace areas, such as drones and satellite technologies.

Rising Inflows in Gold ETFs

This has been influenced by rising gold prices this year. This is similar to high inflows in high-risk sectoral and thematic funds when the stock markets were regularly scaling new highs.

Steady Growth of Inflows in SIPs of Mutual Funds

While looking at healthy mutual fund SIP (Systematic Investment Plans) inflows one needs to keep in mind that they have prevented deep correction of Indian markets in the recent past. They have also taken mutual funds to smaller towns and far-flung areas thanks to various online investment tools.