Equietree's value strategy shines, as Indian markets are sharply reinforced on the relief of trading tensions | Einsmark news

India took the lead in the global recovery of the equity market, with the Nifty 50 and Sensex posting four straight sessions of profits. The benchmarks increased by 6.5 percent and 6.4 percent by a mixture of domestic macro stability and the improvement of global clues. The return of the market follows a difficult phase characterized by volatility arising from geopolitical and trade -related uncertainties. Domestic strength and policy support drives the market momentum The turnaround in sentiment has been largely driven by domestic factors. Financial shares have emerged as the largest contributors to the rally, supported by the Reserve Bank of India’s back-to-back Repo rate cuts. These cuts came in response to a cooling inflation cooling, partly thanks to falling vegetable prices. The improved inflation outlook has strengthened the expectations of another possible rate reduction in the near term-to carry the optimism in the tempo-sensitive sectors in the lining. Bankweights such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank and the State Bank of India have seen significant buying interests as investors on a supportive interest rate cycle and resilient loan growth trends. Trade tension facilitates slightly, supporting the risk sentiment worldwide, relieving the trade war rhetoric also offered tranquility. US President Donald Trump’s back of some previously announced rates, along with a temporary break in new levies, has helped to calm investors’ nerves. While US -China trade voltages are still shining over the global markets, recent developments have been a break in the aggressive attitude, which paved the way for renewed risk appetite among world investors. This combination of supportive domestic policy measures and a relative cooling of external risks has given Indian shares the room to recover from the recent lows. The result: Strong influx of both retail and foreign institutional investors, driving markets upwards and recovering confidence. What should investors do now? Equietree’s portfolio outlook: Staying focused on fundamentals Equitree Capital still relying on its deep value, Fundamentals-First Philosophy. According to the firm, although markets can be driven by sentiment in the short term, long-term performance comes from the support of quality businesses through economic cycles. “In FY25, despite the noise and the intermittent market Euphoria, we remained the course – which focused on the base of the main headlines,” Equitree noted in his portfolio commentary. The fund manager avoids overcrowded trades and contributes to betting with high conviction, while also selectively investing in new opportunities in the Telecom EPC and the lubricating segment. The firm remains especially ugly for manufacturing, infrastructure, engineering and emerging consumption themes – which they believe benefits the structural growth track of India. The alpha event in emerging leaders Equitree sees long-term alpha-generation in companies within the £ 500-5,000 crore market cap-hooks business business that has strong balance sheets, competitive aftermaths, and is still undervalued by the broader market. Their portfolio is currently trading at just 13 times FY26 earnings, with a predicted profit growth of 25-30 percent. The fund follows a strategy with a low churn, with a concentrated portfolio of 12-15 names for the long time. With the relief of trade tension and a supporting macro background, the recovery of the Indian market was quickly and broadly based. But the approach of Equitree stands apart – not just to use the setback, but to adhere to his strategy through cycles. While the market continues to consume global and domestic developments, disciplined, fundamental investments remain the key to continued performance. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions. First published: 18 Apr 2025, 11:23 am Ist