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💼The main force behind the ongoing global rally in stocks has been the steadily climbing US market. 💼The fact that S&P 500 made 46 new highs this year indicates the strength of this bull market led by the US. 💼The rally has the fundamental support of a strong US economy and decent corporate earnings growth. 💼Even though the Middle East geopolitics has been a dampener, it didn’t spike crude prices and, therefore, there is no threat to inflation which remains under control allowing the Fed to cut rates. 💼The consensus now is the soft landing scenario for the US economy and, this is the strong support to this bull market. 💼In India the main driver of the bull run has been the sustained domestic flows into the market which has been absorbing all the selling by FIIs. 💼The domestic flows will continue to support the market but elevated valuations will put a cap on the upside. 💼Nifty is likely to consolidate around 25000 level. Q2 earnings will be weak except in IT, banking and pockets of autos. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Going into the Q2 results season, the market has been expecting good numbers from IT and banking. 💼HCL Tech’s good results confirm the optimistic expectations and the banking results, particularly from the leading private banks, also are likely to be good. 💼Unlike IT stocks where there is only limited valuation comfort, the banking stocks offer decent valuation comfort and, therefore, have the potential to move up from the present levels. 💼The sharp cut in Brent crude by 3% is a macro positive for India, but CPI inflation for September coming worse than expected at 5.49% is a concern and the MPC will be forced to take this seriously and postpone the rate cut to 2025. 💼Even though FIIs continue to sell, the intensity of their selling has come down reducing the pressure on largecaps. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼This month, through 11th October, FPIs have sold equity for Rs 58710 crores. ( Source: NSDL) This massive selling didn’t have a serious impact on the market since the entire FPI selling has been absorbed by DIIs who are receiving sustained fund inflows. 💼This trend of FII selling and DII buying is likely to sustain in the near-term since Chinese stocks continue to be cheap compared to the elevated valuations in India. 💼IT and banking stocks are likely to remain resilient on the back of expected good Q2 numbers. 💼However, there is only limited scope for the market to move up sharply from here. 💼FY 25 earnings expectations have been downgraded by most analysts. 💼The uncertainty surrounding the US presidential elections next month also is likely to weigh on markets along with the geopolitical tensions in the Midfle East. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Market is likely to remain volatile in the near-term alternating between FII selling and DII buying. 💼Attractive valuations in other markets, particularly in Chinese stocks, will facilitate further selling by FIIs in India since Indian valuations are elevated. 💼Concerns of earnings downgrades in H2 FY 25 render Indian valuations difficult to sustain. 💼However, the sustained flows into the domestic mutual funds, where monthly SIPs have set a new record of Rs 24500 in September, will ensure that all FII selling will be easily absorbed by DII buying. This has been the trend in October so far. 💼A healthy trend in the market is the leading private sector banks getting accumulated and showing resilience even in a weak market. 💼This is the most attractively valued segment in this market where there is no valuation comfort. 💼Lot of stock-specific action can be expected in the coming days in response to Q2 results. Banking and IT are likely to post reasonably good results. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼There are no immediate near-term triggers that can take the market sharply up or down. 💼Up moves may attract selling by FIIs who are likely to move some more money to China and Hong Kong since these markets are cheap and is witnessing uptrend now. 💼But FII selling is unlikely to push the market down significantly since the ample domestic liquidity can easily absorb such selling. 💼A range-bound market is the near-term scenario and, therefore, the real action will be stock-specific. 💼Since there is no valuation comfort in the market now and the mid and smallcap segments are overvalued, investors should give priority to safety and prefer largecaps. 💼Bank Nifty has more potential to move up and there is valuation comfort in this space. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations. 💼In India metal stocks rallied in response to the Chinese stimulus measures. 💼It remains to be seen whether the Chinese monetary stimulus will have an enduring positive impact since China’s economic woes are structural and difficult to address through a monetary stimulus. 💼It is more likely that the positive sentiments now being felt may soon dissipate and weaken. 💼The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. 💼If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Two trends deserve attention. The serious global geopolitical concern continues to be the Middle East where things are getting worse. 💼Israeli strikes on Lebanon has killed hundreds of people triggering concerns. Crude has inched up. 💼Gold and the volatility index are moving up reflecting anxiety. However, the market remains resilient and the undertone continues to be bullish. 💼Investors have to take a call based on these two trends. 💼The preference for quality and fair value is getting stronger in India as reflected in the continuous rise in Bank Nifty for the eighth straight session. 💼The return of FIIs into the market in September will aid recovery in frontline banking stocks. 💼SEBI’s latest warning about 93% of individual traders losing money in the F&O market should be taken seriously. 💼It is unfortunate that while systematic investors are making good money the vast majority of individual traders are losing money. 💼The primary responsibility of conserving and growing one’s hard earned money rests with the individual. Earlier the individual traders realise this, the better for them. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

Geojit’s Head Investment Strategist, Gaurang Shah speaks on the current market conditions and shares his weekly market outlook. He also shares two long-term investment ideas. Watch the video for more information. To know more on Smartfolios - https://smartfolios.geojit.comTo know more on Partner Program - https://partner.geojit.comTo know more about Global Investments - https://www.geojit.com/globalinvestmentsTo invest in Mutual Funds - https://fundsgenie.in/#/loginTo read our Insightful Articles - https://blog.geojit.com/Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Past performance does not guarantee future returns. We do not offer any product which gives guaranteed returns. The information is only for consumption by the client and such material should not be redistributed. #stocktips #consolidationphase #longterm #investment #SIP #stockmarket #mutualfunds #sharemarket #Investmentstrategy #invest #sensex #trading #stocks #sectors #investing #economy #stockmarket #marketupdates #GeojitGaurangShah #GeojitOutlook #GaurangShah #stocktips #consolidationphase #longterm #investment #SIP #stockmarket #mutualfunds #sharemarket #Investmentstrategy #invest #sensex #trading #stocks #sectors #investing #economy #marketupdates #GeojitGaurangShah #GeojitOutlook #GaurangShah

💼The charging bull got a shot of steroids from the Fed when it cut interest rates by 50bp on September 18th. 💼More than the rate cut, it was the Fed chief’s optimistic commentary that lifted the markets sharply. 💼The signal from the Fed is that inflation is under control and the economy is unlikely to tip into recession. 💼This message is positive for equities, positive for emerging markets and positive for India. 💼Nifty now appears to be moving to its next target of 26000 which is only 210 points away. 💼The move towards this target is likely to be led by the banking majors which are showing strong momentum. 💼There are two factors favouring banking stocks now: one, the FIIs who were major sellers early this year have turned buyers and they are likely to buy more banking stocks which are even now fairly valued in this highly valued market. 💼Second, the credit-deposit gap which has been impacting banks’ margins has started narrowing. 💼In brief, accumulation is likely in banking stocks and this has the potential to push the market up. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets