New Delhi, March 31 -- Dear reader,

Last week, I wrote about the possibility of higher volatility due to the expiry of the March derivatives series. I also put forth my hypothesis that institutional players would be a dominant reason for markets to witness stability and/or upthrust. Both these hypotheses were validated by the markets. Headline indices gained and public sector undertaking (PSU) stocks saw a rise in trader participation along advocated lines. Now that the usual year-end pull-push effect is done and dusted, the process of price discovery can begin.

I have been advocating procyclicality (when financial asset prices move in unison with economic outlook) for calendar 2025. I have also been warning you about the rising cost of...