Geojit Financial Services Ltd

💼The sharp rebound in the market yesterday indicates a halt to the downward trend witnessed during the last many days. 💼The fact that the rebound is being led by fairly-valued and fundamentally strong large banking stocks is important and points to the possibility of the continuation of the trend. 💼However, the poor earnings growth in Q2 and earnings downgrades for FY 25 are headwinds that will constrain a sustained rally. 💼What is likely is stock-specific action in response to results, guidance and expectations. 💼Investors can utilise the market rallies to move from high-priced mid and smallcaps to the safety of largecaps. 💼The noise and action related to the US elections will last only for a few days, after which economic fundamentals will determine the direction of the market trend. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With all attention focused on the outcome of the US presidential election, perhaps the more important domestic economic issue is not getting the importance it deserves. 💼It is important to understand that India’s underperformance is striking: while S&P 500 is up 20.45% YTD Nifty is up by only 10.36% YTD. 💼Clearly, domestic issues are weighing on markets. With two thirds of Nifty 50 companies missing their earnings estimates in Q2, Nifty 50 earnings for FY25 has been drastically revised down to less than 10% from the consensus 15% earlier. 💼With this kind of earnings downgrade it would be difficult to sustain the current valuation. 💼This is the rationale of the relentless FII selling which might continue for some more time. 💼Investors can opt for the safe strategy of remaining invested and accumulating stocks in segments which can weather the volatility. 💼Apart from leading financials, auto stocks like Eicher Motors and M&M have exhibited earnings momentum and improving prospects, going forward. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With Nifty returning 25 percent and Nifty 500 returning 30 percent in Samvat 2080, investors should be happy. 💼But the 6.2% correction in October, the first above 5 percent correction in 54 months, has triggered anxiety over the market performance, going forward. 💼Of serious concern is the relentless FII selling in October amounting to Rs 113858 crores through the exchanges. 💼Given India’s elevated valuations and concerns over deceleration in earnings growth, FII selling might continue, impacting the benchmark indices. 💼In such a scenario investors should focus on stock-specific investment where Q2 results have been good and earnings visibility is bright. 💼The latest data regarding banking indicates that deposit growth has caught up with credit growth and this augurs well for banking stocks which are fairly valued. 💼Public capex is likely to pick up in H2 FY 25 and this augurs well for cement stocks. 💼Pharma stocks like Sun Pharma and Cipla have good earnings visibility. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼This Diwali is unlikely to see fireworks in the market. 💼India has been underperforming in October with Nifty down 5.7% when markets in US and Japan have delivered positive returns and China and Hong Kong have hugely outperformed. 💼India’s underperformance is driven by lofty valuations, relentless FII selling and concerns over slowing earnings growth. 💼In the near-term, this scenario is unlikely to change, reversing the trend decisively, even though mild pullbacks are possible. 💼A significant trend in the market is the strong stock-specific action. 💼Better-than-expected results are responded with sharp moves up to 20% a day while worse-than-expected results are met with around 15% correction. 💼This trend of strongly rewarding good results and punishing poor results equally strongly is a reflection of the focus on stock-specific action rather than focus on the benchmark indices and market as a whole. 💼Given the elevated valuations, and the possibility of continuing FII selling, stocks and sectors which have delivered good results and good guidance are likely to remain resilient. Investors should focus on these segments. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼A distinct change in the long-term market trend is discernible from the recent market movements. 💼The overarching trend that took the Nifty from the COVID low of 7511 in March 2020 to above 26200 in September 2024 has been the ‘buy on dips’ strategy that worked well consistently. 💼With the massive, sustained and unprecedented selling by the FIIs, which has touched Rs 98085 crores this month up to 24th, the buy on dips strategy is not working. 💼More important, the consensus downward revision in FY25 earnings estimate and the weak Q2 numbers have soured the sentiments to slightly bearish mode. 💼The positive factor is the sustained flows into mutual funds that is helping DIIs absorb the massive FII selling. 💼This can provide resilience to the otherwise weak market where even after the 7% correction there is no valuation comfort, except in pockets like largecap financials. 💼Growth stocks are likely to be more resilient in this market where value is hard to come by. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The major headwind that the market is facing now is the massive, unprecedented and sustained FII selling which has touched Rs 93088 crores through 23rd October, as per NSDL data. 💼The fundamental trigger for the FII outflows is the elevated valuations in India and the relatively cheap and attractive valuations in markets like China and Hong Kong. 💼The FII selling is getting aggravated by news of slowdown in corporate earnings. 💼Uptrend in the market is not compatible with downtrend in earnings growth and, therefore, the market is witnessing selling at every rise, turning the near-term market structure into ‘sell on rally.’ 💼Investors should be cautious at this juncture and refrain from chasing temporary rallies. 💼High quality financials and IT stocks can be bought on dips. 💼Digital stocks which continue to show acceleration in growth can be gradually accumulated on declines. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The ongoing trend of largecaps outperforming mid and smallcaps is likely to sustain, going forward. 💼FII selling and the countervailing trend of DII buying is likely to continue. 💼This will impart strength to largecap financials, particularly banking stocks like HDFC, ICICI, Axis and Kotak which are fairly valued in this market with elevated valuations. 💼Investors need not rush to buy the beaten down mid and smallcaps since there is more pain left in this segment where valuations continue to remain very high. 💼There can be individual cases of sharp rebounds in this segment. 💼Zomato’s Q2 results indicate continuing acceleration in revenue and profitability. This is a stock to watch. 💼In the coming days the market will be looking forward to the outcome of the US presidential elections and its possible impact on the market. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼When market valuations are at elevated levels some trigger will cause corrections, making the valuations reasonable and in tune with long-term averages. 💼This time the trigger for the correction has come from the sustained selling by FIIs which has reached Rs 88244 crores by 21st October, according to NSDL. 💼This record high FII sell figure didn’t impact the market severely because of the countervailing action of sustained DII buying. 💼The fact is that even after the correction triggered by the sustained FII selling Indian market valuations are higher than historical averages even though largecap valuations can be justified by their long-term growth prospects. 💼Since market sentiments continue to be negative a sharp and sustained recovery appears difficult even though a rebound can happen any time. 💼Financials will be relatively resilient in the present market setting. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With the US markets setting new record highs, the global stock market rally appears intact. 💼The steady decline in crude and stability in the US bond yields impart resilience to the stock market despite the lingering tensions in the Middle East. 💼The hope raised by the Chinese stimulus and the cheap valuations of Chinese stocks have the potential to sustain the ‘Sell India, Buy China’ tactical trade for some more time. 💼This presents an opportunity for medium to long-term investors. Of the total FII AUM of $930 billion about 28% is financials which are facing the brunt of FII selling. 💼The sustained FII selling has rendered the valuations of financials attractive in an otherwise over-valued market. 💼More important, financials segment is doing well and is in the pink of health. 💼Q2 results of leading banking names like HDFC, Kotak and Axis indicate improving prospects. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets