⚡ Quick Take

•  Equities remain stronger than they were through 2024, supported by festive demand and tax/GST-led tailwinds.

•  Debt markets are stable, with 10Y yields around 6.5–6.6% and a softening trend likely into 2026.

•  Gold saw a notable correction after an extended uptrend, with valuations now normalizing.

•  Global markets traded mixed as the USD strengthened and commodities softened.

•  Our stance: maintain equity exposure, selectively add to debt, and avoid overreacting to short-term gold volatility.

Theme of the Month: The Future Isn’t What It Used to Be

Markets evolve, cycles shift, and sentiment always rewrites itself — often faster than forecasts can keep up. October was a reminder that while the future rarely looks like our expectations, the long-term trends tend to reveal themselves beneath the noise.

Gold’s correction, equity’s muted but steady performance, and debt’s quiet consolidation all point to a market transitioning into a more balanced, less speculative phase. Investors may need to adjust expectations  not out of caution, but out of clarity. What worked last year may not work this year, and what feels uncomfortable today may prove rewarding tomorrow.

📈 Equities: Gradual Strength Continues

We remain more positive on equities now than we were in 2024.

Key drivers include:

• Favorable festive demand and seasonal effects

• Government-led consumption stimulus

• Tax rebates and GST rationalization creating room for spending

• Corporate earnings trending stable with margin resilience

🏦 Debt: Stability With an Upward Bias

Interest rates remain soft and stable.

• 10Y G-Sec yields are currently near 6.5%

• A move towards 6.2% remains possible if inflation stays muted

• RBI’s stance appears balanced and supportive

Rates may stagnate or tighten slightly in 2026, as current levels reflect the bottom of this rate cycle. Debt is once again becoming an attractive asset class — a welcome shift after the muted returns from 2020–23.

🟡 Gold: Is the Decline Substantial?

Short answer: No.

Not when considering the sharp rally that preceded it.

Gold corrected −7.2%, but this needs context:

• The metal had been overbought for several months

• Global risk appetite improved

• USD strengthened, causing a natural unwind

📝 RBI, Policy and Macro Watch

Government stimulus and consumer sentiment jointly supported demand this season. GST tweaks and tax benefits continue to ease spending pressure.

Consumption remains one of the most reliable pillars of domestic growth — and early festive cues reaffirm this.

From a policy standpoint, RBI’s consistent communication and steady liquidity management remain supportive for debt markets and for overall macro stability.

🎯 Our Recommendations to Investors

👉 Take your updated Risk Profile Questionnaire:

To ensure your allocation aligns with your unique risk profile:
https://report.quinstinct.com/riskprofiler

Your profile helps us tailor recommendations as Market Type evolves.