Form is Temporary, Fundamentals Last Forever: Investing Lessons from IPL 2025

Even as the Indian equity benchmark indices have been range-bound over the past five trading sessions, the broader macro narrative continues to be encouraging. The news flow paints a picture of resilience and stability in the Indian economy, despite the looming concerns of geopolitical tension and global uncertainty. A strong start to the south-west monsoon, reaffirmed by the India Meteorological Department’s forecast of an above-normal season (106 per cent of LPA), bodes well for rural demand. Meanwhile, the Reserve Bank of India’s enhanced dividend payout has allayed fears around fiscal slippage, and its persistent efforts to improve system liquidity are bearing fruit. These factors—fiscal strength, a benign inflation outlook, improved liquidity, and a reversal in FPI flows since March 2025—have together supported the decline in benchmark 10-year bond yields to their lowest level since 2021. The currency remains stable, and the growth outlook is improving.