Expect volatility in first 3 months, but earnings to improve going into Q4 and Q1 of FY26
Mayuresh Joshi, Head Equity, Marketsmith India, says expect a lot of fireworks this year and markets are expected to remain volatile, at least in the first quarter of the next calendar year with Trump assuming US reins, soft earnings so far and the Budget at the beginning of February. But if earnings show signs of improvement as we head into Q4 and Q1 of the next financial year, we might see some respite going forward but the first quarter is going to be very volatile as far as the markets are concerned.
Joshi also says that the power theme stands out in 2025. The entire ecosystem of power generators, power transmitters, EPC players, and financiers would continue doing well if the big picture argument of power for the next five years continues and the capital spend on power probably continues.
What is the year ahead looking like? Is it anything close to a party or is it going to be a more sombre year?
Mayuresh Joshi: It will be a party with a lot of fireworks to be honest. You never know what is going to happen. When Trump resumes office, the kind of tweets that you are initially seeing come through, what he probably imposes in terms of tariffs or otherwise, he is going to keep markets on their toes. But all the rhetoric might probably keep markets on track.
The second is earnings and that has been soft. Coming to consumption, the trends thereof are indicating that earnings slowdown is here and will probably stay at least for the next couple of quarters. Obviously, with better monsoons that we have seen, and a
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