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Economic Times
4 days ago
- Business
- Economic Times
MF Tracker: Will this Rs 30,000 crore smallcap fund continue to maintain its long-term performance?
Launched in September 2009, the SBI Small Cap Fund is given a three-star rating by Value Research and is unrated by Morningstar. SBI Small Cap Fund emerged as the best-performing equity mutual fund based on daily rolling returns, delivering a CAGR of 21.87% over the past seven years. This performance stands out among approximately 171 equity mutual funds during the same timeframe. Launched in September 2009, the fund is given a three-star rating by Value Research and is unrated by Morningstar. Based on daily rolling returns, the fund has offered 20.68% CAGR in the last five years and in the last three years, it gave a CAGR of 26.13% based on daily rolling returns. Also Read | Nippon India Taiwan Equity Fund tops return chart with 22% in May. Can the momentum sustain? Based on the trailing returns, the fund has underperformed or performed at par with the category average. In the three months, the fund gave a 15.23% return against 18.64% as the category average. In the last six months, the fund lost 6.95% against a loss of 6.49% by the smallcap category. In the last one year, three years, and five years, the fund has underperformed against its category average in the similar period. Over the past year, the fund delivered a return of 7.43%, lagging the category average of 14.96%. Over three years, it posted an 18.87% CAGR versus the category's 23.38%. Across five years, the fund returned a CAGR of 29.31%, falling short of the 34.23% category average. Note, the returns of benchmark BSE 250 Small Cap - TRI were not available in the ACE MF, so ETMutualFunds could not compare the performance of the fund with the benchmark. According to an expert, since its inception, SBI Small Cap Fund has consistently outperformed its benchmark, delivering a 21.87% CAGR over seven years based on daily rolling returns, an impressive feat in the small-cap space. 'What sets the fund apart is its consistency across market cycles, including periods of high volatility like the 2020 pandemic crash and the 2018 mid-cap/small-cap correction. Even during these downturns, the fund demonstrated lower drawdowns compared to peers, suggesting superior risk-adjusted returns,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets, shared with adds that the fund follows a bottom-up stock-picking approach, with a focus on companies having scalable business models, clean governance, and healthy balance sheets. Over the last 10 calendar years (2015–2024), the smallcap fund posted negative returns only once—in 2018—when it declined 19.62%. Its best performance came in 2017, delivering a stellar return of 78.66%, the highest in the decade.'The fund has consistently showcased strong downside protection compared to both its benchmark and peers. During the 2018 small-cap correction, while the Nifty Small Cap 100 index dropped by 44.4%, SBI Small Cap Fund limited its decline to just 28.1%, outperforming the category average fall of 29.4%,' Jain further commented.'Again, in the 2020 COVID-19 market crash, the fund's downside capture ratio stood at an impressive 43.6, meaning it lost less than half as much as the broader market. In recent corrections, the funds have been almost at par with its peer and benchmarks. These figures highlight the fund's resilience and effective risk management, even during some of the most volatile market phases,' she added. Also Read | 9 equity mutual funds offer over 20% CAGR in seven years. Are there any included in your portfolio? If an investor invested Rs 10,000 at the time of the inception of the fund, the current value of the investment would have been Rs 1.23 crore with an XIRR of 21.37%. In the last five years, the value of the same monthly investment would have been Rs 9.53 lakh with an XIRR of 19.14%.In the last three years, the value of the same SIP investment would have been Rs 4.44 lakh now with an XIRR of 14.93%If an investor made a lumpsum investment of Rs 1 lakh at the time of the inception of the fund, the current value would have been Rs 16.91 lakh now with a CAGR of 19.67%. In the last five years, the value of the same lumpsum investment would have been Rs 3.58 lakh with a CAGR of 29.08%. In the last three years, the value of this investment would have been Rs 1.68 lakh now, with a CAGR of 18.90%.The smallcap fund had 79.73% in equity, 0.17% in debt, and 20.10% in others as on April 30, 2025. In comparison to the small cap category, the scheme is overweight on others, whereas underweight on equity and debt. The category on average had 91.20% in equity, 0.29% in debt, and 8.51% in others. Being a smallcap fund, the scheme invests 76.96% in small caps, 1.77% in mid caps, and 21.27% in the allocation of the small cap fund, Jain said that SBI Small Cap Fund has demonstrated effective downside risk management by maintaining a well-diversified portfolio, avoiding excessive concentration, and adopting a bottom-up stock selection approach and the fund manager tends to focus on companies with strong balance sheets, quality management, and scalable business models traits that help weather economic slowdowns. The PE and PBV ratios of the midcap fund were recorded at 40.75 times and 6.26 times, respectively, whereas the dividend yield ratio was recorded at 0.59 times as of April fund had the highest allocation in the finance sector of around 7.94% compared to 7.53% in the category. The scheme is overweight on capital goods, chemicals, FMCG, hospitality, Agri, Infrastructure, and consumer durables.'Many of the portfolio's companies are under-researched or emerging players, which offers the potential for high alpha generation. The fund typically holds around 45–55 stocks, ensuring diversification without dilution of returns,' Jain told ETMutualFunds. Also Read | Planning to save Rs 10,000 monthly? Here is how much you will generate in 25 years The top 10 stocks of the fund constitute 24.66% of the total portfolio as of April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.65 and an alpha of 0.01. The sortino ratio of the scheme was recorded at 0.54. The return due to net selectivity was recorded at (0.06), and the return due to improper diversification was recorded at 0.07 in the last three expert adds that the fund's Sharpe Ratio has consistently been higher than the category average, reinforcing its strength in managing both growth and downside risks. The investment style of the fund is to invest in growth-oriented stocks in smallcap market capitalisationApart from the SBI Small Cap Fund, there are 22 other funds in the category which have a track record of three years in the market. Among the total 23 funds in the category, Bandhan Small Cap Fund offered the highest return of 32.09% in the last three years. ITI Small Cap Fund offered the second-highest return of 29.40% in the same period. PGIM India Small Cap Fund gave the lowest return in the last three years of around 15.45%. Post the performance of the small cap fund in the last three years, Jain said that the Nifty SmallCap 250 index is running at a PE ratio of about 32.4 which is higher than the 5 years average PE range, indicating that valuations are stretched which suggests that investors should be cautious in the short term, as high valuations may limit near-term upside and increase vulnerability during market corrections. For conservative investors, Jain advises that they may choose to stay away from small-cap funds given their high volatility and current elevated valuations, and instead, they can focus on large-cap funds, which are available at attractive valuations and offer more stability in uncertain markets. On the other hand, for aggressive investors, she adds that those with a high-risk appetite and long-term horizon can consider adding small-cap funds with a proven track record to their portfolios. 'A staggered investment approach through SIPs is advisable to manage market fluctuations and reduce timing risks. While near-term caution is warranted, small-cap funds continue to offer strong long-term growth potential in India's expanding economy,' she should always choose a scheme based on risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
4 days ago
- Business
- Time of India
MF Tracker: Will this Rs 30,000 crore smallcap fund continue to maintain its long-term performance?
SBI Small Cap Fund emerged as the best-performing equity mutual fund based on daily rolling returns, delivering a CAGR of 21.87% over the past seven years. This performance stands out among approximately 171 equity mutual funds during the same timeframe. Launched in September 2009, the fund is given a three-star rating by Value Research and is unrated by Morningstar. Based on daily rolling returns, the fund has offered 20.68% CAGR in the last five years and in the last three years, it gave a CAGR of 26.13% based on daily rolling returns. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 호계동: 손끝에서 빛나는 반지 [지금 확인] 월드비전 더 알아보기 Undo Also Read | Nippon India Taiwan Equity Fund tops return chart with 22% in May. Can the momentum sustain? Based on the trailing returns, the fund has underperformed or performed at par with the category average. In the three months, the fund gave a 15.23% return against 18.64% as the category average. In the last six months, the fund lost 6.95% against a loss of 6.49% by the smallcap category. In the last one year, three years, and five years, the fund has underperformed against its category average in the similar period. Live Events Over the past year, the fund delivered a return of 7.43%, lagging the category average of 14.96%. Over three years, it posted an 18.87% CAGR versus the category's 23.38%. Across five years, the fund returned a CAGR of 29.31%, falling short of the 34.23% category average. Note, the returns of benchmark BSE 250 Small Cap - TRI were not available in the ACE MF , so ETMutualFunds could not compare the performance of the fund with the benchmark. Experts take on performance According to an expert, since its inception, SBI Small Cap Fund has consistently outperformed its benchmark, delivering a 21.87% CAGR over seven years based on daily rolling returns, an impressive feat in the small-cap space. 'What sets the fund apart is its consistency across market cycles, including periods of high volatility like the 2020 pandemic crash and the 2018 mid-cap/small-cap correction. Even during these downturns, the fund demonstrated lower drawdowns compared to peers, suggesting superior risk-adjusted returns,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets, shared with ETMutualFunds. Jain adds that the fund follows a bottom-up stock-picking approach, with a focus on companies having scalable business models, clean governance, and healthy balance sheets. Over the last 10 calendar years (2015–2024), the smallcap fund posted negative returns only once—in 2018—when it declined 19.62%. Its best performance came in 2017, delivering a stellar return of 78.66%, the highest in the decade. 'The fund has consistently showcased strong downside protection compared to both its benchmark and peers. During the 2018 small-cap correction, while the Nifty Small Cap 100 index dropped by 44.4%, SBI Small Cap Fund limited its decline to just 28.1%, outperforming the category average fall of 29.4%,' Jain further commented. 'Again, in the 2020 COVID-19 market crash, the fund's downside capture ratio stood at an impressive 43.6, meaning it lost less than half as much as the broader market. In recent corrections, the funds have been almost at par with its peer and benchmarks. These figures highlight the fund's resilience and effective risk management, even during some of the most volatile market phases,' she added. Also Read | 9 equity mutual funds offer over 20% CAGR in seven years. Are there any included in your portfolio? If an investor invested Rs 10,000 at the time of the inception of the fund, the current value of the investment would have been Rs 1.23 crore with an XIRR of 21.37%. In the last five years, the value of the same monthly investment would have been Rs 9.53 lakh with an XIRR of 19.14%. In the last three years, the value of the same SIP investment would have been Rs 4.44 lakh now with an XIRR of 14.93% If an investor made a lumpsum investment of Rs 1 lakh at the time of the inception of the fund, the current value would have been Rs 16.91 lakh now with a CAGR of 19.67%. In the last five years, the value of the same lumpsum investment would have been Rs 3.58 lakh with a CAGR of 29.08%. In the last three years, the value of this investment would have been Rs 1.68 lakh now, with a CAGR of 18.90%. The smallcap fund had 79.73% in equity, 0.17% in debt, and 20.10% in others as on April 30, 2025. In comparison to the small cap category, the scheme is overweight on others, whereas underweight on equity and debt. The category on average had 91.20% in equity, 0.29% in debt, and 8.51% in others. Being a smallcap fund, the scheme invests 76.96% in small caps, 1.77% in mid caps, and 21.27% in others. Post the allocation of the small cap fund, Jain said that SBI Small Cap Fund has demonstrated effective downside risk management by maintaining a well-diversified portfolio, avoiding excessive concentration, and adopting a bottom-up stock selection approach and the fund manager tends to focus on companies with strong balance sheets, quality management, and scalable business models traits that help weather economic slowdowns. The PE and PBV ratios of the midcap fund were recorded at 40.75 times and 6.26 times, respectively, whereas the dividend yield ratio was recorded at 0.59 times as of April 2025. The fund had the highest allocation in the finance sector of around 7.94% compared to 7.53% in the category. The scheme is overweight on capital goods, chemicals, FMCG, hospitality, Agri, Infrastructure, and consumer durables. 'Many of the portfolio's companies are under-researched or emerging players, which offers the potential for high alpha generation. The fund typically holds around 45–55 stocks, ensuring diversification without dilution of returns,' Jain told ETMutualFunds. Also Read | Planning to save Rs 10,000 monthly? Here is how much you will generate in 25 years The top 10 stocks of the fund constitute 24.66% of the total portfolio as of April 2025. Based on the last three years, the scheme has offered a Treynor ratio of 1.65 and an alpha of 0.01. The sortino ratio of the scheme was recorded at 0.54. The return due to net selectivity was recorded at (0.06), and the return due to improper diversification was recorded at 0.07 in the last three years. The expert adds that the fund's Sharpe Ratio has consistently been higher than the category average, reinforcing its strength in managing both growth and downside risks. The investment style of the fund is to invest in growth-oriented stocks in smallcap market capitalisation Apart from the SBI Small Cap Fund, there are 22 other funds in the category which have a track record of three years in the market. Among the total 23 funds in the category, Bandhan Small Cap Fund offered the highest return of 32.09% in the last three years. ITI Small Cap Fund offered the second-highest return of 29.40% in the same period. PGIM India Small Cap Fund gave the lowest return in the last three years of around 15.45%. Post the performance of the small cap fund in the last three years, Jain said that the Nifty SmallCap 250 index is running at a PE ratio of about 32.4 which is higher than the 5 years average PE range, indicating that valuations are stretched which suggests that investors should be cautious in the short term, as high valuations may limit near-term upside and increase vulnerability during market corrections. For conservative investors, Jain advises that they may choose to stay away from small-cap funds given their high volatility and current elevated valuations, and instead, they can focus on large-cap funds, which are available at attractive valuations and offer more stability in uncertain markets. On the other hand, for aggressive investors, she adds that those with a high-risk appetite and long-term horizon can consider adding small-cap funds with a proven track record to their portfolios. 'A staggered investment approach through SIPs is advisable to manage market fluctuations and reduce timing risks. While near-term caution is warranted, small-cap funds continue to offer strong long-term growth potential in India's expanding economy,' she added. One should always choose a scheme based on risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
19-05-2025
- Business
- Time of India
Sensex @82,300: Should mutual fund investors alter their investment strategy?
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads With the benchmark index - Sensex , reaching the 82,300 mark on Friday, market experts note that though this is a remarkable milestone, the mutual fund investors should stay invested , stick to the asset allocation, and a large cap tilted portfolio will be a good approach.'We recommend investors remain invested, data suggests timing of markets is not possible, stick to your asset allocation, and considering how expensive mid-caps and small caps are, we recommend a large-cap tilted portfolio, recommended Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in explains that often, investors relate the price of an index or stock to conclude whether the instrument is overvalued or undervalued but in reality, the P/E ratio signifies if the index is trading at under/over /fair currently Nifty 50 1-year forward PE ratio suggests a PE of 22x compared to a historical long-term average of 19.5x which suggests that the index is slightly above its historical average, but is not at alarming levels where one should be Read | Flexi Cap vs. Multi Asset Allocation Mutual Funds: Which one is best for you? The benchmark index is still 4% down from its all-time high level of 85,978.25 recorded on September 27, 2024. Sensex on Friday touched a mark of 82,514 and dropped marginally by 0.22% to close at 82,330 market expert mentions that while the Sensex crossing 80,000 is a remarkable milestone, mutual fund investors should view this through a long-term lens and the goal of investing is wealth creation over time, not reacting to short-term highs.'If an investor has immediate fund requirements in the next 3–6 months, it may make sense to book partial profits. But for most investors, it's best to stay invested, maintain discipline, and avoid making hasty decisions based on market levels. Remember, building wealth requires patience, and rushing to book gains could mean missing out on future upside,' recommended Shruti Jain, Chief Strategy Officer, Arihant Capital the BSE Sensex scales up, many existing mutual fund investors look for better investment options and are willing to start new investments, but are confused whether to postpone their fresh investments or move further to do the investments in this market there are many first-time investors who are willing to allocate in the categories which offer high returns, have low or high risk, and offer tax recommends that we are currently in a volatile environment, it's better to deploy to funds where the fund manager can have flexibility and flexi cap, value, and focused – are a few categories one can help the new investors, he adds that, 'If you are a new investor, the past performance of mutual funds might result in having unrealised returns, including continuation of such returns. If you are a new investor, it would be prudent to start with Hybrid Instruments. One can consider Balanced advantage or Multi-Asset allocation funds – these will give the fund manager flexibility to invest across asset classes as pockets of markets are still in an expensive zone and this would be a good start for a new investor.'There is no universal solution as the right approach varies from investor to investor, Jain advocates. 'There is no one-size-fits-all answer—it depends on individual goals and risk tolerance," she recommending fresh investments at record highs, Jain said that investors may consider a diversified approach, leaning toward large-cap, flexi-cap, and hybrid funds and as mid- and small-cap funds have underperformed recently, and contrarian sectors or infrastructure-themed funds could be worth exploring selectively. 'Investing through Systematic Investment Plans (SIPs) at this stage can also help mitigate timing risk and provide rupee cost averaging benefits,' she Sensex in the last one month has gained 6.86% whereas in three months it gained 8.41%. In the current calendar year so far, the index has gone up by 5.36% and in the last one year , it gained in double-digits. It surged 11.76% in the past one the correct approach in this current market scenario, Dhawan recommends that one should continue investment with a long-term investor of at least 7-10 years and for lumpsum investment, one can consider large-cap tilted funds or index funds, or for factor-focused, one can consider quality or low volatility focused funds. He adds that, 'Do note that a 5-year SIP effectively translates to an average holding period of only 2.5 years because the 1st SIP has completed 60 months, whereas the last SIP has completed only a few days.'Jain firmly says that in the current market scenario SIPs should absolutely continue, regardless of market levels as the idea behind SIPs is to navigate market volatility and maintain discipline and over the long term, SIPs offer the benefits of timing diversification and portfolio rebalancing.'For lump sum investments, it would be prudent to stagger the allocation—either through Systematic Transfer Plans (STPs) or by parking funds in short-term debt funds initially and deploying gradually. Evaluate fund performance and align with your goals before making large lump sum bets,' the Chief Strategy Officer at Arihant Capital Markets important thing to consider while making the investment decision is can hybrid mutual funds offer a safer route at current index levels or should mutual fund investors consider increasing exposure to debt or gold funds at market peaks?Hybrid funds are mutual funds that invest in a mix of different asset classes, primarily equity and debt, but also include gold and real estate in some cases. It's also an easy option for those who want to invest in multiple asset classes for diversification whereas gold is considered a hedge against inflation and with global economic conditions remaining uncertain, gold is expected to retain its appeal as a hedge against market experts consider hybrid mutual funds and debt funds as a good option for investment in the elevated market levels, while recommend to limit the exposure in asserted that hybrid mutual funds (balanced or dynamic asset allocation funds) can offer a more balanced and safer route at elevated market levels, and additionally, debt and gold funds can offer stability and diversification—especially useful at market peaks. However she cautions that with interest rates stabilising and geopolitical tensions easing, these categories can play a defensive role and it's important to note that even gold has rallied, so exposure should be based on asset allocation plans and not purely short-term sentiment.'Yes, hybrid funds are a good option to consider and are a safe route as well – the fund automatically rebalances across asset classes depending on market valuations. One can consider the Balanced Advantage category along with the multi asset category. Investors should go through the detailed fact sheets of the fund to understand the asset allocation model before investing,' Dhawan recommended'Debt does look like a good option, with liquidity back to surplus, lower GDP growth compared to the initial print, and the possibility of additional rate cuts – one can look to add duration into the portfolio. Investors can consider constant maturity funds with an exposure of 25% on the overall fixed income portfolio'He added that Gold has surged higher in recent times, and it's very common for investors to chase previous returns, and based on current prices, gold does look overvalued. 'As a result, it would be prudent to limit exposure to 5% -10% of the portfolio and invest via an SIP route rather than a lump sum option. As an alternative, one can consider Silver Funds – Silver looks relatively undervalued compared to gold, but does come with additional volatility, which can be mitigated with a combined gold and silver instrument with a long-term investment horizon,' Dhawan should always choose a scheme based on risk appetite, investment horizon, and goals.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
11-05-2025
- Business
- Economic Times
Will a fragile India-Pakistan ceasefire spark a stock market rally? 5 signs to read
Despite heightened tensions at the borders, the announcement of an India-Pakistan ceasefire is expected to set Indian markets on an upward trajectory this week. The markets, which had been recovering from a recent correction, took a hit as tensions between the two countries escalated. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Despite heightened tensions at the borders, the announcement of an India-Pakistan ceasefire is expected to set Indian markets on an upward trajectory this week. The markets, which had been recovering from a recent correction, took a hit as tensions between the two countries escalated. Headline indices Sensex and Nifty fell over 1% on Friday. THowever, it should be noted that the Indian government has said Pakistan violated the ceasefire agreement along the Line of Control (LOC) and the situation remains evolving by the the conflict, the stocks showed resilience with no major correction, which indicates strong underlying confidence. The ceasefire news is likely to further bolster that and support a market rebound."With the announcement of a ceasefire, the lingering fear among investors is expected to ease further. As a result, we anticipate a positive start to the week," said Shruti Jain, Chief Strategy Officer, Arihant Capital Markets India and Pakistan agreed to a ceasefire on Saturday after experiencing their worst fighting in decades. For four days, the two nuclear-armed neighbors exchanged missile, drone, and artillery strikes. The ceasefire was first announced by US President Donald Trump, who claimed that the United States had acted as a mediator. However, India denied that the US played a role in brokering the conflict began after terrorists killed 26 people in a tourist area on the Indian side of Kashmir last month. Following this, India on the night of May 7 launched precision strikes against terror Tapse of Mehta Equities noted that the ceasefire between India and Pakistan marks a significant diplomatic and strategic victory for India in its fight against terrorism."This de-escalation removes a key overhang on investor sentiment and is likely to be seen as a major positive development by financial markets," he too favours a rebound, where markets have shown a tendency to recover following such geopolitical de-escalations."A gap-up opening of 200–300 points on the benchmark indices is expected on Monday, as investor confidence returns. However, volatility is likely to persist, driven by the ongoing earnings season and global uncertainties—especially tariff-related developments," Tapse Nifty held above 24000 and now 23500 mark becomes a key make-or-break support, according to various analysts."On the upside, immediate resistance lies between 24250 and 24300. A broader recovery may only unfold once Nifty decisively surpasses the stiff hurdle at 24600, which marks the 61.8% retracement of the fall from all-time highs," said Rajesh Bhosale, Equity Technical Analyst, Angel are 5 signs to read about the impact of India-Pakistan ceasefire on marketsCeasefire announced after Intense fighting: India and Pakistan agreed to a ceasefire on Saturday following four days of intense likely to rebound: Despite recent market volatility, the announcement of a ceasefire is expected to support a market rebound this showed resilience during conflict: Indian stocks showed resilience even during the border tensions, experiencing no major booster: Analysts like Prashanth Tapse of Mehta Equities believe the ceasefire marks a strategic victory for India and removes a key overhang on investor sentiment. The de-escalation is seen as a positive development for financial levels to watch: Nifty is expected to find strong support at 23,500, while resistance lies between 24,250 and 24,300.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
11-05-2025
- Business
- Time of India
Will a fragile India-Pakistan ceasefire spark a stock market rally? 5 signs to read
Despite heightened tensions at the borders, the announcement of an India-Pakistan ceasefire is expected to set Indian markets on an upward trajectory this week. The markets, which had been recovering from a recent correction, took a hit as tensions between the two countries escalated. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Despite heightened tensions at the borders, the announcement of an India-Pakistan ceasefire is expected to set Indian markets on an upward trajectory this week. The markets, which had been recovering from a recent correction, took a hit as tensions between the two countries escalated. Headline indices Sensex and Nifty fell over 1% on Friday. THowever, it should be noted that the Indian government has said Pakistan violated the ceasefire agreement along the Line of Control (LOC) and the situation remains evolving by the the conflict, the stocks showed resilience with no major correction, which indicates strong underlying confidence. The ceasefire news is likely to further bolster that and support a market rebound."With the announcement of a ceasefire, the lingering fear among investors is expected to ease further. As a result, we anticipate a positive start to the week," said Shruti Jain, Chief Strategy Officer, Arihant Capital Markets India and Pakistan agreed to a ceasefire on Saturday after experiencing their worst fighting in decades. For four days, the two nuclear-armed neighbors exchanged missile, drone, and artillery strikes. The ceasefire was first announced by US President Donald Trump, who claimed that the United States had acted as a mediator. However, India denied that the US played a role in brokering the conflict began after terrorists killed 26 people in a tourist area on the Indian side of Kashmir last month. Following this, India on the night of May 7 launched precision strikes against terror Tapse of Mehta Equities noted that the ceasefire between India and Pakistan marks a significant diplomatic and strategic victory for India in its fight against terrorism."This de-escalation removes a key overhang on investor sentiment and is likely to be seen as a major positive development by financial markets," he too favours a rebound, where markets have shown a tendency to recover following such geopolitical de-escalations."A gap-up opening of 200–300 points on the benchmark indices is expected on Monday, as investor confidence returns. However, volatility is likely to persist, driven by the ongoing earnings season and global uncertainties—especially tariff-related developments," Tapse Nifty held above 24000 and now 23500 mark becomes a key make-or-break support, according to various analysts."On the upside, immediate resistance lies between 24250 and 24300. A broader recovery may only unfold once Nifty decisively surpasses the stiff hurdle at 24600, which marks the 61.8% retracement of the fall from all-time highs," said Rajesh Bhosale, Equity Technical Analyst, Angel are 5 signs to read about the impact of India-Pakistan ceasefire on marketsCeasefire announced after Intense fighting: India and Pakistan agreed to a ceasefire on Saturday following four days of intense likely to rebound: Despite recent market volatility, the announcement of a ceasefire is expected to support a market rebound this showed resilience during conflict: Indian stocks showed resilience even during the border tensions, experiencing no major booster: Analysts like Prashanth Tapse of Mehta Equities believe the ceasefire marks a strategic victory for India and removes a key overhang on investor sentiment. The de-escalation is seen as a positive development for financial levels to watch: Nifty is expected to find strong support at 23,500, while resistance lies between 24,250 and 24,300.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
