Markets have factored in concerns about oil and trade deals, says Unmesh Sharma from HDFC Securities.

The stock market’s future direction is a topic of great interest to investors. In an interview with Unmesh Sharma, who leads institutional equities at HDFC Securities, the discussion centered on Foreign Institutional Investor (FII) flows and the impact of trade tariffs. Sharma expressed optimism about FII flows, noting that the market is currently witnessing a positive trend in this area. He emphasized the importance of FII investments in providing liquidity and stability to the stock market.

Sharma highlighted the significance of trade tariffs in influencing market sentiment. He explained that any escalation in trade tensions could lead to increased volatility in the market. This volatility arises from uncertainties surrounding global trade policies and their potential impact on various sectors. Sharma advised investors to closely monitor developments related to trade tariffs to gauge their impact on the market.

When asked about the sectors that are likely to drive market performance, Sharma identified specific industries that hold promise. He pointed to the financial sector as being well-positioned for growth, especially with the current supportive economic environment. Additionally, he highlighted the technology sector as one to watch, citing advancements and innovations in this industry as key drivers of growth.

Sharma also shared insights on the impact of government policies on the stock market. He acknowledged that policy decisions could significantly influence market trends and investor sentiment. Sharma emphasized the need for market participants to stay informed about relevant policy changes to make informed investment decisions.

In discussing the overall market outlook, Sharma remained cautiously optimistic. While acknowledging potential risks and uncertainties, he expressed confidence in the market’s resilience and ability to navigate challenges. He encouraged investors to adopt a long-term perspective and focus on underlying fundamentals rather than short-term fluctuations.

Overall, Unmesh Sharma’s insights provide valuable perspective on the factors shaping the stock market’s trajectory. From FII flows to trade tariffs and sector-specific considerations, his analysis offers a comprehensive view of what investors can expect in the coming months. As the market continues to evolve, staying informed and mindful of key drivers will be essential for navigating investment opportunities successfully.