Strong Liquidity & Low Inflation: India’s Bull Case Strengthens | Market Commentary

In a powerful market outlook, experts insist that the bias remains strongly positive for Indian equities, with the potential to hit new all-time highs. A successful Indo-US trade deal could immediately unlock large-scale FII inflows, especially as foreign ownership sits at a multi-decade low, setting the stage for a strong rally. Even if the deal faces delays, domestic liquidity continues to drive markets, supported by robust macro fundamentals - low inflation, falling interest rates, strong monsoons, and improving rural & urban consumption. Corporate earnings in Q2 already exceeded expectations, and momentum is expected to continue in Q3 and Q4. While valuations remain elevated, experts argue they are justified as India delivers growth superior to most global markets, making this bullish sentiment hard to ignore.