Key Highlights
- The firm had eased its valuation worries back in May 2025, after markets steadied in the aftermath of global tariff-related tensions.
- Saion Mukherjee of Nomura said in the note that the optimistic view stems from a blend of easing geopolitical tensions, steady macro fundamentals, and a cyclical rebound in economic activity and corporate profitability.
- Additionally, policies focused on boosting domestic growth, enhancing self-reliance, and driving structural reforms are likely to further strengthen overall market confidence.
- "We further expect policies to support domestic growth with a focus on self-reliance and efforts that seek to address structural issues," Mukherjee said.
- Meanwhile, domestic inflows remain strong and valuations are high, reducing the influence of foreign institutional investors (FIIs) in recent months.
