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“The US 10-year moving up is definitely a headwind to all the risk assets globally. Within that emerging market spectrum, we believe India is relatively well-placed and that is where we believe the next few months are going to be challenging and this market can correct down but that is part of the equity game.”

Pradeep Gupt of Anand Rathi Group, expects nominal GDP growth of 10% to 11% in the next 12 months. He believes that market timing and instrument selection have a limited impact on portfolio returns, accounting for only about 10% of the variability. While geopolitical concerns have caused short-term volatility in equity markets, Gupta maintains a positive outlook for the Indian equity market due to strong macroeconomic and corporate fundamentals.

"Domestic steel companies like JSW Steel are expected to continue performing well due to the recovery in prices on the London Metal Exchange (LME) and the expected increase in demand from China in the next financial year. The steel industry is cyclical, but with infrastructure spending expected from the government and the growth in realizations for ferrous players, these companies can benefit. Cement and road construction companies, such as UltraTech and Dalmia Bharat, are also worth watching due to their strong earnings growth potential."

Samco Mutual Fund believes that there is still momentum in the small and midcap space despite the pace of inflows slowing down in midcap and smallcap funds. Valuations in the midcap and smallcap space are stretched, but there are still investment opportunities in niche NBFCs, specialty chemicals, auto and auto ancillaries. Thematic funds have gained traction due to geopolitical factors. Key factors to watch in Q2 earnings include IT companies that are not facing weaknesses and improvements in the margins of manufacturing, automobiles, and FMCG sectors.

RSI or the relative strength index computes the ratio of the recent upward traction in the stock price movement relative to its absolute price movement.

Volatility has been moving in a narrow range around 11 zones and thus not creating any major panic in the market with a capped upside.

Rahul Shyam Shukla, Head of Commercial & Rural at HDFC Bank, discusses the challenges of agricultural lending, including weather-related risks. He emphasizes the importance of maintaining a GNPA (Gross Non-Performing Assets) between 4% and 5% and pricing it correctly. Shukla also provides guidance for the Commercial & Rural division, including expecting a 25-30% growth rate and a pre-tax ROA (Return on Assets) of over 3%.