Trump rally hopes spark optimism as investors eye growth in 2025: Santosh Rao
«So, net-net, I think, okay, there is some back and forth going on, we had the surprise from the Fed chair, but overall, the tailwind is still there coming into 2025,» says Santosh Rao, Manhattan Venture Partners.
Where is the Santa? Santa is supposed to come year end, Santa rally is missing.
Santosh Rao: We still have a week left, so I am sure we will get a little bit more. The whole thing is, at a broader picture, we will have the benefit of doubt, we will have the Trump rally. We are still not sure if it was pulled forward, I do not think so. The market is still good. The fundamentals are still good. Yes, inflation is sticky, there is fear of the budget deficits, there is fear of tariffs and lower taxes. All this trifecta of events are still weighing on the long-term bonds. So, the bond market, the yields are going up there.
But overall, at least for one year, the earnings are expected to be up 15% next year, according to consensus estimates. So, the story will be good at least for one year, going into Trump administration. So, net-net, I think, okay, there is some back and forth going on, we had the surprise from the Fed chair, but overall, the tailwind is still there coming into 2025.
But what about the overall trend that we are witnessing in India with respect to the FII outflows? Do you think after the massive rally that we have seen in the US, it is still the preferred port of call or do you think at some point of time money will start flowing back into India as well?
Santosh Rao: India ultimately will
