Anil Singhvi identifies 8 positive signals for Dalal Street now

Even as markets trade in a range-bound fashion post the ‘Operation Sindoor’, Zee Business Managing Editor Anil Singhvi has identified 8 positive signals that could boost D-Street. As we write, Nifty is trading with a negative bias at 24,390, nearly 8 per cent below its all-time high scaled last year in September.

Below are the key positives helping the Street as per Singhvi-

Falling inflation:

Retail inflation in India cooled to 3.34 per cent in March 2025, a 5-year low given the softening in food prices. This was the lowest rate since September 2019. Falling inflation aids stock markets as it creates a more conducive environment for both businesses as well as investors.

Reduction in key repo rate:

So far in 2025, the Reserve Bank of India has slashed the key policy rate by 50 basis points. And going forward too, the apex bank is expected to continue with its rate cut spree. SBI Research in its report pointed to further rate cuts to the tune of 0.75 per cent or 75 basis points in June and August.

“With multi-year low inflation in March and benign inflation expectations going forward, we expect rate cuts of 75 basis points in June and August (H1) and another 50 bps cut in H2 i.e. cumulative cuts of 125 bps going forward while 25 bps rate cut has already been initiated in Feb’25 (that could put the terminal Rate at ~5.0%-5.25% by March 2026),” said SBI Research in its report.

Expectations of a favorable monsoon:

India is forecast to receive above-average monsoon rains for the second consecutive year in 2025, bolstering expectations of higher farm as well as economic growth in India. India Meteorological Department (IMD) earlier this year projected a  seasonal rainfall at 105 per cent of the long-period average (LPA) between June and September, with a model error margin of ±5 per cent. 

Robust GST collection:

Hinting at strong and consistent economic progress, GST collections in India scaled a record high of Rs 2.37 lakh crore in April.

Good earnings season: 

Singhvi stated that the earnings season has been good so far with no negative surprises.

Strong buying by FIIs-DIIs

The renewed FII and continued DII participation signals higher confidence in the India market amid a conducive policy and macroeconomic backdrop. So far in May, FIIs have net bought Indian equities worth Rs 9,647.98, while DIIs net purchase is at Rs 7,059.96.

FTA deal with UK

India signed a historic free trade agreement (FTA) with the UK earlier this week and because of it several Indian sectors stand to benefit significantly due to tariff reductions, market access, and regulatory easing.

India-US trade deal in the offing 

India and the United States are on the verge of finalising a substantial bilateral trade agreement in 2025, marking a big development in their economic relationship. As the latest move, India has proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis up to a certain quantity of imports in its trade talks with the US.

Further, he added that for now the only risk facing D-Street is the escalation of India-Pakistan tensions.