Geojit Financial Services Ltd

💼An important takeaway from the Q3 results is the improving profitability of India Inc. EBITDA and profit after tax are growing impressively even while sales growth is average. 💼Automobiles, pharmaceuticals and capital goods are doing very well. In banking there is impressive credit growth and improving profitability. 💼PSU banks are outperforming private sector banks due to low valuations which continue to be fair even after the run up in prices. 💼Investors should be careful while chasing many mid and small caps which are rising sharply without fundamental justification. 💼Many of these stocks have very low floating stock and, therefore, can easily be manipulated by cartel of operators. In the long run only stocks with strong fundamentals will give steady and good returns. . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The market has been range bound in recent days due to bouts of selling and buying. 💼During the last 2 days, FIIs sold equity worth Rs 6993 crores in the cash market while DIIs bought equity worth Rs 5173 crores. 💼The trend of FII selling is likely to continue since the 10-year US bond yield is high at 4.24%. The trend of DII buying too is likely to continue since the flows into the DIIs continue to be robust. 💼The global market construct continues to be favourable with the mother market US remaining resilient with S&P 500 at record highs. 💼Pockets of overvaluation in the broader market continues to be a worry. Banking stocks are fairly valued. RIL is strong. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 A significant feature of a bull market is its ability to bounce back from a steep fall. This was evident yesterday when Nifty bounced back by around 300 points from the lows. 💼 The heavy selling by FIIs,which was expected in response to the spike in US bond yields, didn’t impact the market since it was neutralised by DII and individual investor buying. 💼A significant feature of the market now is the change in leadership. Reliance has emerged as the leader of the rally and is supported by ICICI Bank and SBI. 💼The strength of these fundamentally strong stocks augurs well for the bulls. 💼The valuation gap between large caps and the broader market continues to be an area of concern. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 An important ongoing trend in the market is the weakness in the broader market with sharp cuts in many mid and small caps. 💼 Many such stocks driven up by speculative buying without consideration for the fundamentals are correcting. This trend is likely to continue since many such stocks are excessively valued. 💼The explosive growth in the number of demat accounts and the newbies chasing mid and small caps influenced by recency bias have contributed to this froth in the broader market. 💼A correction in this segment is inevitable and desirable. Correction will give opportunities to buy fairly valued stocks in this segment like PSU Banks. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 With S&P 500 closing above 5000 for the first time, support from the mother market augurs well for the bulls. 💼But the bears are likely to take cues from the rising US bond yields ( 10-year yield is at 4.17%) which normally triggers big selling from FIIs. So the tug of war between the bulls and the bears is likely to continue. 💼 The fact that the markets are resilient even after the initial enthusiasm of early rate cuts in 2024, both in US and India, has moderated is an indication of the underlying strength of the market. 💼Apart from positive economic cues, a major factor supporting the market is the sustained flows to the market through mutual funds. 💼This can trigger buying on dips and the high market valuations are likely to be sustained for some time. 💼However, the frothy valuations of the broader market are a matter of concern. From the long-term perspective, safety is in large-caps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 When valuations are high the bears will use any negative news to push the market down. 💼 The slightly negative news, from the market perspective, came yesterday in the slightly hawkish comments of the RBI Governor. 💼The good news that the economy is doing better-than-expected and a GDP growth projection of 7% and CPI inflation of 4.5% for FY 25 was ignored. 💼The selling was aggravated with FIIs, too, running with the bears. There is a significant build up in the short position of FIIs. This normally happens along with the rise in the US 10-year bond yields which is now at 4.15%. 💼 FII selling and bear onslaught are unlikely to take the market down significantly. There will be strong buying on dips. 💼The sustained flows into mutual funds which is gathering momentum will enable the DIIs to buy aggressively. 💼A good investment strategy now would be to buy the bluechips which FIIs are selling. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The mother market US is setting new records and this provides the support to facilitate new records in India, too. 💼 The bulls are again on the front foot and will use any positive news to push the market forward. 💼The event which will be closely watched today would be what RBI says. No rate action is expected today, but the commentary from the central bank would be keenly watched. 💼Positive comments on the economy and any signs of a dovish tone will be positive for the markets. 💼Even while enjoying this bull run in the market, investors should keep in mind the fact that market valuations are high and partial profit booking and moving some money to fixed income would be a safe strategy. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼A significant feature of the ongoing bull market is its ability to bounce back from dips. 💼This makes buy on dips strategy successful. The bounce back happening now is being led by IT and supported by autos and pharma even while Bank Nifty continues to decline. 💼The fact that new leaders are emerging to take the market forward indicates that the uptrend is in tact and new record highs are possible soon. 💼An area of concern is the excessive speculation in low-grade stocks where many are doubling in a few days. 💼These excesses of a bull market warrant caution. Investors should stay in the comfort of high quality stocks. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The near-term market trend indicates exhaustion and there are no clear positive triggers that can take the market to sustained new highs immediately. 💼 An important event coming up is the RBI meeting on 8th. But no positive triggers like a rate cut are likely from the RBI meeting. 💼The global market construct also is challenging with the 10-year bond yield rising again to 4.13% and the dollar index rising to 104.5. 💼The positive takeaway is that the U.S. economy is doing surprisingly well and a sharp global slowdown triggered by a possible US recession is very unlikely. This, along with declining inflation in US can support global equity markets. 💼Investors may wait and watch for new trends to emerge while remaining invested in this bull market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate