💼 The near-term market construct has turned weak with FIIs turning sellers on rallies.
💼 The trend of FII buying in early December has proved to be, as feared, a flash in the pan.
💼 Yesterday’s massive FII sell figure of Rs 6410 crores in the cash market indicates that more selling is in store on market bounces.
💼 The underlying reason for the FII selling in India is the outperformance of the US market and the underperformance of India.
💼 While the S&P 500 is up 27.5% YTD, Nifty is up only 12% YTD, and the fear is that this huge variation in relative performances may continue, given the strength of the US economy and the weakness in the Indian economy.
💼 The situation will change if leading indicators in India suggest recovery in GDP growth and corporate earnings in Q3.
💼 The focus of global markets today will be the Fed decision expected tonight.
💼 A 25 bp rate cut is priced-in by the market, so the attention will be on the Fed commentary.
💼 A significant trend in the Indian market is the outperformance of the broader market, where good results are getting appreciated by the market and there is no concern of FII selling.
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Posted on : 18 Dec 2024 10:35 AM