The Indian stock market has seen volatility since peaking in July. Will this trend continue? In this episode of businessline’s “State of the Economy” podcast, we take a look at the Indian stock markets. businessline’s Parvatha Vardhini C talks to Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services Ltd, about the markets’ current state and future trajectory.

Karwa provides insight into the key factors contributing to indecision among investors and how long it might continue. He notes that between March and July, Nifty, small cap, and mid cap indices experienced significant gains. Robust inflows from foreign portfolio investors (FPIs) further fuelled the rally. However, a recent change in FPI inflows has affected market dynamics, causing a shift in sectoral performance.

He notes that sectors like pharma, IT, media, and realty picking up momentum. He advises investors to focus on individual stock prospects rather than being overly concerned about Nifty’s short-term movements.

In the podcast, Parvatha Vardhini and Karwa analyse the Q1 results of Indian companies. They decode how profits are growing strongly even though revenue growth is in the mid-single digits and talk on the earnings prospects of corporate India for the rest of this fiscal year. They discuss how inflation and uneven monsoons will impact the economy and the markets.

They also talk on how external factors like rising US treasury yields and Chinese slowdown could impact the Indian equity markets and how domestic investors, SIP inflows, and domestic institutional ownership can play a balancing factor in market dynamics.

(Host: Parvatha Vardhini C; Producers: V Nivedita, Nabodita Ganguly)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.