Is India The Only Market Still Driven By Real Fundamentals? | Govindraj Ethiraj | The Core Report

✪ Members first on August 26, 2025 The Core Report On Episode 663 of The Core Report, financial journalist Govindraj Ethiraj talks to Prabhakar Kudva, Director and Principal Officer – Portfolio Management Services at Samvitti Capital. India’s Markets and Fundamentals: India’s markets are holding firm even as the economy braces for a 25% additional tariff from the US starting August 27. This takes total tariffs to 50%, threatening labour-intensive exports like apparel, leather, seafood, and gems. RBI Governor Sanjay Malhotra reaffirmed the central bank’s commitment to price stability and growth. He emphasized financial and price stability as enablers, not obstacles. RBI will maintain ample liquidity to support the economy and closely monitor tariff impacts. 45% of sectors remain unaffected, and FTAs are being pursued. Malhotra also confirmed progress on trade in local currencies, calling it a priority. With inflation easing below target for the first time in 8 years, RBI held rates steady and remains growth-focused. Meanwhile, US Fed Chair Powell’s Jackson Hole comments hinting at rate cuts lifted global markets. Wall Street surged, and hopes for renewed FPI flows pushed Indian indices up. Sensex gained 329 points to 81,635 and Nifty rose 97 points to 24,967. IT stocks led gains as investors bet on undervaluation. China’s CSI 300 rose 2.1% in a liquidity-driven rally. However, Macquarie economists caution it reflects liquidity, not fundamentals. Fitch affirmed India’s BBB- rating, while S&P raised it to BBB, signalling global confidence despite tariff risks. India’s government will now source inflation data from Amazon, Flipkart, and others to better reflect rising online consumption habits in the CPI basket. Oil Imports Fall: India’s crude oil imports fell 9% in July to 18.5 million tonnes — the lowest since Feb 2024. Imports were also down 4.3% YoY. Fuel consumption dropped 4.3% MoM, while refined product exports slipped 2.1%. Indian refiners resumed Russian oil purchases after discounts widened, despite global scrutiny. Small Town Fund Managers: India’s fund management landscape is shifting. Investors and capital are now flowing into and from small towns. Samvid Capital, based in Mulki, Karnataka, is a prime example. Co-founder Prabhakar Kudwa, a former tech entrepreneur, now manages diverse portfolios from this coastal town — once known for surfing, now for smart investing. Thanks for watching this deep dive into how India’s markets, fundamentals, and small-town fund managers are reshaping the investment story. If you’re tracking real growth beyond global volatility, you’re in the right place. Stay informed with The Core Report for sharp insights into business, economy, and policy that matter now. #thecorereport #indiamarketnews #fundamentalinvesting #govindrajethiraj #economyupdate #thecore