Geojit Financial Services Ltd

💼 A distinct feature of a bull market is its ability to set new highs. This was evident yesterday when the Nifty set a new intraday high. 💼 In this bullish scenario characterised by strong momentum and supported by sustained gush of capital flows into the market, every dip will be bought, imparting resilience to the market. 💼Since the global construct is slightly negative as evidenced by the rising dollar and rising US bond yields ( the 10-year is at 4.3%) the FPIs may be tempted to sell. 💼But FPI selling is not having any major impact on the market since DIIs, HNIs and retail investors are calling the shots now. 💼Even while riding the bull, investors should know that liquidity is overwhelming fundamentals in many pockets of the broader market. This calls for caution. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The undertone of the market is bullish and there is momentum in the market. 💼 The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2 trading days indicates that the upward momentum can sustain. 💼 There are reports of mutual funds introducing restrictions on redemptions from the smallcaps schemes. This is in response to the ‘ frothy’ valuation in this segment and the concerns expressed by the regulator. 💼The consequence of this action would be higher flows of funds into the largecaps, which, in turn, can lift the largecaps. 💼 So, watch out for largecaps in automobiles, capital goods, financials and select pharma which are likely to post good Q4 numbers. 💼The RBI monetary policy meet scheduled for April 3 to 5 is likely to keep rates unchanged and, therefore, is unlikely to impact the market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The upward directional move expected from early April has been confirmed by the strong 119 rally in Nifty yesterday. 💼 The primary catalyst for the ongoing rally is the huge liquidity flows into the market. DIIs have pumped in a massive Rs 24373 crores into the market during the last seven trading days imparting resilience to the market. 💼Since flows into the market continues and is showing no signs of slowdown, a scramble for high quality stocks with good growth prospects is likely. This was evident in the spurt in Reliance stock yesterday. 💼 A significant trend in the market is the steady performance of industrials like L&T, Siemens, Cummins and ABB. This trend is likely to continue. 💼Pharma is another sector which is on sound footing. It is important to note that the PSU Bank Index which has given stellar return of 90% in FY24, has further potential to go up since there is valuation comfort in the segment. . . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 Market is likely to continue in the consolidation mode for couple of days more and then take a new directional trend starting April. 💼 The undertone of the market continues to be bullish supported by strong economic fundamentals. 💼A significant structural trend in the market is the sustained flows into equity mutual funds which is gathering momentum. This will ensure resilience of the market with dips getting bought. 💼Midcaps have again become the segment of activity, particularly by retail investors. This is because there is no institutional selling pressure in midcaps unlike in largecaps where institutions including FIIs have large holdings. 💼Financials are likely to lead the rally along with capital goods and automobiles in early April. 💼Credit growth in the economy is impressive at around 20% and this will help boost banks’ profitability. Q4 results of banks will be good. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 Market is likely to consolidate this week in the absence of any known triggers for sharp up or down moves. 💼 Since the week is a truncated week of three trading days, volumes have dipped markedly indicating absence of significant directional move. 💼The Fed’s optimistic message has imparted resilience to the mother market US and this will impart confidence in markets, globally. 💼The strong growth momentum in the Indian economy will provide the fundamental support to the market. 💼The recent trend of outperformance of the largecaps over the broader market, particularly the smallcaps, is likely to continue. 💼Some froth in the broader market has been removed, but smallcap valuations continue to be high. 💼While the market consolidates around the current levels, dips can be used to buy high quality largecaps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 In the near-term the market is likely to consolidate around the present levels without sharp up moves or down moves. 💼 In view of the truncated next week with only three trading days, volumes have dipped significantly in recent days. This is likely to continue. 💼 However, big intraday dips are likely to be bought since DIIs are sitting on big cash and there is value in pockets of largecaps like banking. 💼 IT is likely to remain under pressure in view of the poor guidance from Accenture. Any sharp intraday up moves may face selling from FIIs since the US bond yields continue to remain high. 💼 Global market construct continues to be supportive with the US and Japanese markets posting new record highs. 💼 A significant takeaway from the Fed chief’s message yesterday is the upward revision in the expected US GDP growth in 2024 to 2.1% from 1.4%. This augurs well for the global economy. . . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The uncertainty regarding the Fed decision is over with the Fed keeping the rates unchanged and refraining from a hawkish message. 💼The Fed chief’s statement that “inflation has eased substantially while the labour market has remained strong” conveys conviction about the soft landing of the US economy and the possibility of probably three rate cuts this year. 💼The response from the market was the US indices racing to record highs. This favourable global construct will have its positive impact on Indian markets too. 💼The tug of war between FIIs and DIIs is being won by the DIIs for sometime now. This trend will continue if the FIIs continue to sell, and, therefore, FIIs are likely to slowdown their selling and may turn buyers. 💼 This will be positive for largecaps in banking, telecom, capital goods and automobiles. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 There is a significant trend in the market decline yesterday. Nifty corrected by more than 1% even when institutions where big buyers. 💼 DII buying was Rs 7449 crores and FII buying was Rs 1421 crores. TCS bulk sales by Tata Sons clouds this institutional activity. 💼But the important point is that there has been profit booking by HNIs and retail investors which pulled the market down. 💼SEBI’s warning about elevated valuations in the broader market has played a role in this profit booking. 💼Fed’s rate decision, more importantly the Fed commentary tonight, will decide the trend in the mother market US. 💼Buy on dips is likely to emerge today in large caps. Bank Nifty has the potential to lead the buying supported by other high quality largecaps like Bharti, RIL and leading auto stocks. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The resilience of the mother market US, supported by the surprisingly robust economy, is the foundation of the ongoing global market. 💼 The end of the decades long deflation in Japan and the Nikkei index posting record highs also has been a supporting factor. 💼In the near-term a change in the global market construct will happen if the Fed sends a hawkish message stronger than market expectations. 💼This cannot be ruled out since the declining trend in US inflation has been arrested in the last two months and the Fed is always known to respond to “ incoming data and evolving outlook.” 💼The spike in the dollar index and the US bond yields reflect this concern. 💼Investors may wait for clarity to emerge on the Fed response tomorrow. Large caps like RIL, Bharti, Tata Motors, M&M and Sun Pharma appears strong even in an indecisive market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate