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Will market volatility continue into the New Year despite festive optimism? Expert answers

Indian markets are likely to remain volatile as the year draws to a close, with no clear breakout in sight, according to Abhishek Basumallick, co-founder and fund manager at Shree Rama Managers. He believes the festive season and New Year may bring brief optimism, but deeper concerns still linger.

“We are heading into a festive season and New Year, and I don’t think volatility will go anytime soon,” Basumallick said. “There might be some initial euphoria around year-end and the beginning of the New Year, but the range that we are stuck in is likely to stay for some time.”

He added that while domestic fundamentals remain reasonably strong, global factors continue to dominate sentiment. “Although we are doing quite well, the main trigger right now is the US tariff issue,” he noted.

Basumallick pointed out that export-heavy sectors are closely watching developments on this front. Industries such as textiles, aquaculture, fisheries and auto ancillaries could be impacted, as they depend heavily on exports to the US.

On commodities, he said gold’s sharp rise reflects global uncertainty. “Gold is going up due to geopolitical tensions and a weakening dollar. Gold and silver have moved very fast, almost in a parabolic way,” he said.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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