The stage for a bull market is all set:
- Credit growth is in double digits, and it's expanding.
- The global AI capex cycle has kicked in, and is also flowing into orders for Indian companies.
- Energy transition is getting accelerated by renewable sources, as the cost to produce this energy is getting reduced example solar, bio-gas, hydrogen, batteries.
- India is gearing up to double down on its defense exports.
- Infrastructure connectivity is improving across roads, railways, air, and sea.
- Massive rail network expansion and upgradation will reduce the cost of logistics.
- Large-scale sea/air ports are getting built for global supply chain connectivity.
- Ease of capital is available for startups and deep-tech firms.
- Global supply chain diversification, e.g., China+1, is becoming visible across various sectors such as manufacturing, pharma, electronics, etc.
- India's healthy relationship with developed and developing countries is adding to export expansion in these countries.
The moment the current geopolitical situation gives some sign of stability, it should trigger the start of the bull market.