New Delhi, July 7 -- The first half of 2025 proved turbulent for Indian equities. Geopolitical tensions, fears of slowing global growth weighing on exports, and muted domestic consumption dampened investor sentiment. The MSCI India Index slumped to a new low of 2,574 in February but has since staged a gradual recovery, now trading at 3,006.

A key catalyst has been the Reserve Bank of India's accommodative stance. With inflation easing, the central bank has delivered a surprise 100 basis point cut in the repo rate, alongside a reduction in the cash reserve ratio and other liquidity measures. More monetary policy easing could follow in the second half. A combination of lower borrowing costs, softer inflation, and improved liquidity could h...