Geojit Financial Services Ltd

💼 The main factor influencing the market today is likely to be the better-than-expected Q3 GDP growth number which has come at an impressive 8.4 %. 💼 However, it is important to note that the GVA has come on expected lines at 6.5%. The difference between GDP growth and GVA is due to the excellent 32 % growth in net indirect taxes. 💼Significant internals from the GDP numbers are the 11.6 % growth in manufacturing, the 9.5% growth in construction and 10.6 % growth in capital formation. 💼The impressive GDP numbers provide the fundamental support to the bull market. Large caps like RIL, Bharti Airtel, L&T and ICICI Bank have the potential to lead the rally. 💼Tepid private consumption numbers will be a drag on consumer staples stocks like HUL. The broad trend of the market, going forward, will be the outperformance of large caps over the broader market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The market has suddenly turned unpredictable amidst high volatility. Resistance has become strong at Nifty 22200 level. 💼 The cut in Nifty by more than 1% yesterday despite the FII selling getting neutralised by DII buying is significant. This is due to rebalancing of the positions a day ahead of the monthly expiry. 💼The volatility will continue today, too, being the last day of the monthly expiry. Investors may wait for the volatility to subside. 💼A significant development is the communication from SEBI to AMFI suggesting that mutual funds set up a framework for protecting investors in mid and small cap funds. 💼Sustained flows of retail money into these funds have made their valuations excessive and difficult to sustain. More mid and small cap funds are likely to impose restrictions on lump sum investments into the mid and small cap schemes. 💼This will benefit the large caps which are relatively fairly valued now. The correction in the broader market is likely to continue. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 Market is likely to be in a range-bound zone in the near term. 💼 FIIs have sharply reduced their selling this month and have turned buyers to the tune of Rs 872 crores in the cash market, so far in February, despite the high US bond yields. 💼This indicates that FIIs are unlikely to press big selling pulling the market sharply down. Because of this favourable market construct, dips are getting bought, aided by sustained flows into the market. 💼The present range-bound consolidation phase is likely to continue for some time in the absence of strong positive or negative triggers. 💼The market resilience will be supported by strong stocks like RIL, Bharti, and auto stocks particularly Tata Motors, M&M and Bajaj Auto which have emerged as strong leaders in this phase of the market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 There are indications of exhaustion in the market rally, particularly in the broader market. 💼Higher valuations are constraining the bulls and there are no major positive triggers in the near-term that can sustain the rally beyond a point. 💼Expectations of backloading of the rate cuts from the Fed and the consensus lowering of the number of rate cuts this year also are likely to restrain the rally in the mother market US. This will have its repercussions in Indian market too. 💼Kotak small cap joining Tata and Nippon small cap funds in putting restrictions on investment in their small cap fund is another red flag regarding the excessive valuations of the small cap segment. 💼 Investors should take cues from this and partially move money to the safety of large caps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The global market construct continues to be favourable. With S&P 500 setting newer records the mother market US has turned very resilient . 💼 Japanese Nikkei at record highs is another pillar of support for global markets. Even though high valuation in India is a matter of concern, it is unlikely to impact the market much in the near-term. 💼Cheap valuation in China is not attracting foreign investors. The market leadership is now with fundamentally strong bluechips like Reliance, ICICI Bank and Bharti. 💼Sustained buying by DIIs ( Rs 21700 crores in February so far) supported by HNIs and retail investors has completely eclipsed the FII selling. 💼FIIs have lost in this tug of war with DIIs since the market has been scaling new highs despite FII selling. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 This global bull run led by the mother market US is showing no signs of exhaustion. In the US the rally is being led by the tech stocks . 💼Nvidia’s excellent results have sparked a rally in all AI related tech stocks. This is having its repercussions in the tech stocks in India, too. 💼The steady climb of the Nifty setting records after records is an indication that the buy on dips strategy is working. This trend may continue. 💼But very soon we are likely to have a days of sharp corrections when DIIs resort to some profit booking and FIIs continue to sell persuaded by the high US bond yields which are likely to remain high for sometime. 💼Fed rate cut expectations are much lower than at the beginning of this year. That too will start exerting pressure on the market. Long-term investors should remain invested in this bull market. 💼Partial profit booking from the overvalued mid and small caps and moving the money to high quality large cap banks and fixed income would be a safe strategy in the present context. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The underlying strength of the ongoing market rally is getting widely acknowledged. This explains the FII buying, though marginal, yesterday when the US 10-year bond yield is around 4.3 percent. 💼DIIs have been smart to buy continuously when the FIIs have been selling. So, for DIIs there is room to book some profits, which they did yesterday. 💼In the tug of war between FIIs and DIIs in recent years, DIIs have been the clear winners. So, watch out for the DII action. 💼An important trend now is the huge delivery based buying in the private banks, which are even now attractively valued in this market with elevated valuations. 💼Switching from over-valued mid and small caps to large private banks would be a smart move. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 With seven days of record intraday highs this year Nifty is exhibiting great strength. 💼 The big emerging market worry of rising bond yields in the US is not impacting India since FIIs have been forced to reduce their selling since they are being completely neutralised by sustained DII buying assisted by retail exuberance. 💼This resilient domestic buying is providing the main support to the ongoing rally in the market, and the strong performance of the economy and improving corporate earnings are solid fundamental support to the market. 💼The fact that the fairly valued large private banks are now contributing to the rally is a positive signal. This has the potential to sustain. 💼But the irrational exuberance in pockets of the broader market is unlikely to sustain. Retail investors should not be carried away by this exuberance. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 An important characteristic of bull market is its ability to set new successive record highs. And this market has been doing this consistently. 💼 This year alone Nifty has set 6 new record highs ( intraday) and this is indicative of the strong momentum in the market. 💼Selling by FIIs, triggered by rising bond yields in US, is having no impact on this up trending market where DIIs ( bought Rs 17850 crores in February so far) and domestic HNIs and retail investors are calling the shots. 💼High quality fundamentally strong largecaps like RIL, ICICI Bank and Bharti taking up the leadership in the rally is positive for the bulls. 💼Also it is important to remember that large caps have valuation comfort in this market where segments of the broader markets have tipped into frothy valuations. 💼Since the Bank Nifty is around 4% away from its record high, more action is likely in banking stocks. In the near-term volatility will be high. Sharp corrections can happen at any time. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate