Geojit Financial Services Ltd

💼A dominant factor that has started influencing markets globally is the US presidential elections due in November. 💼Opinion polls indicate that a Trump presidency appears increasingly probable now. 💼The implications of a Trump presidency is higher tariffs on imports into US, particularly from China. Also, Trump favours a weak dollar. 💼Dollar has already started weakening and the dollar index is now at 103.68. This implies higher gold prices. 💼The positive from the Indian stock market perspective is that expectations of weakening dollar will increase foreign portfolio inflows, imparting resilience to the market. 💼The market will be influenced by this development and also by Budget expectations. 💼Results of Infosys today will give greater clarity to the movement in IT stocks. 💼Pharma and healthcare stocks are witnessing slow accumulation. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The global support to the market rally in India continues. 💼It is important to understand that the US is leading this rally with 18.4% returns YTD in S&P 500 compared with 12.7% YTD returns in Nifty. 💼Latest inflation data in US indicates a rate cut by the Fed in September. 💼This is likely to keep the US market buoyant with positive impact in India, too. 💼However, valuations in India is moving to elevated levels. 💼Investors have to be cautious about the excessive valuations in the momentum stocks which are moving to frothy levels. 💼IT results from TCS and HCL Tech indicate improving prospects which the market is discounting now. 💼But the growth projections of IT companies remain low and, therefore, a sharp restating from the present levels is unlikely. 💼Financials remain the fairly valued segment of the market. 💼Decline in US 10-year bond yield is positive for FII inflows. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The market which has been moving in a narrow range this week might react favourably to positive global and domestic cues. 💼The positive global cue is the decline in inflation in US by 0.1% in June triggering hopes of a rate cut by the Fed in September for which the market indicates a 90% probability. 💼The positive domestic cue is the better than expected numbers from TCS and positive management commentary which can lift most IT stocks. 💼An important trend in the market now is that segments like Railways and Defence are booming unabated on hopes while financials are under pressure on fears of declining deposit growth. 💼Both these trends are a bit overdone. Investors can think of moving some money from the overvalued segments to segments which are attractive from the valuation perspective. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼An important feature of the ongoing bull market which has taken the Nifty from the March 2020 low of 7511 to around 24300 now is that it has always rewarded investors who followed the buy on dips strategy. 💼Since the under current of this bull market, both globally and in India, continues to be strong despite the high valuations, buy on dips strategy continues to be relevant. 💼The more than doubling of the AUM of the mutual fund industry from Rs 30 trillion in 2020 to Rs 61 trillion now and the monthly SIPs touching record Rs 21262 crores last month will continue to provide support to the market. 💼But investors should be prepared to absorb corrections and it is important to understand that corrections can happen at unexpected times. 💼A significant trend in the market is the continuous churns in the market. 💼The latest churn is in favour of pharmaceuticals. 💼Another important trend is that the market is favouring premium consumption themes like hotels and select segments of the auto space. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Two important factors that have been contributing to the ongoing bull market in India are the global rally and the sustained flows into the Indian market from retail investors. 💼These two factors continue to be in tact. 💼The US market is doing extremely well with the S&P 500 returning 17.6% YTD against Nifty’s 12.38% return YTD. 💼The flows into the market from retail investor continue unabated with SIP inflows touching Rs 21262 crores in June. 💼These positive trends can impart resilience to the market even though valuation comfort is low now. 💼However investors should be careful about the high level of speculative activity in the Smallcap space where operators are driving up the prices of many shares with low floating stock. 💼The inflation data in US expected on Thursday will determine the Fed action in September. 💼The disinflationary trend is US is likely to sustain enabling the Fed to cut rates in September. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The market is exhibiting strength and is showing no signs of a sharp correction despite the high valuations. 💼A healthy trend in the market is that fundamentally strong largecaps are seeing buying. 💼The rising accumulation and delivery based buying in largecaps like RIL and ITC is a reflection of this healthy trend. 💼It appears that the market is waiting for triggers for a breakout from the present levels. 💼This trigger may come from the Q1 results starting this week. 💼If the management commentaries from the IT majors are positive, that can trigger an up move led by IT stocks. 💼Another trigger for a break out can come from the Budget to be presented on 23rd of this month. 💼Since the economy is in a sweet spot the finance minister is in a position to offer relief to the middle class through income tax reliefs while simultaneously moving firmly on the path of fiscal consolidation. 💼And if status quo is maintained on taxation of capital gains, the market is likely to give a thumps up to the Budget. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Positive news flows can impart resilience to the market in the near-term. 💼The bullish undertone in the US market will be supported by the latest jobs data for June which has come weak, but better-than-expected at 2,06,000 jobs. 💼US unemployment climbing to 4.1% indicates an economy cooling slowly. 💼Disinflation and rising unemployment creates the ideal macro backdrop that can facilitate a rate cut by the Fed in September itself. 💼This is positive for global equity markets. 💼The market will respond to the Q1 results which will start flowing from this week onwards. 💼Financials have the potential to move up further in response to the expected good results. 💼IT is showing signs of improvement. Autos will continue to show improved results. 💼The FMCG segment which has been languishing with low volume growth is showing signs of mild recovery. 💼Watch out for this segment. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼FIIs’ huge long position in the index derivatives and strong buying in the cash market can support the market in the near term. 💼An important trigger may come from the US jobs data expected today. 💼If the jobs data show loosening labour market and slowing economy, it can lead to rate cut by the Fed in September. So, watch out for this data. 💼At 80000 Sensex there is no valuation comfort in the market. 💼Investors should expect only moderate returns in the medium term at the present levels. 💼Long-term prospects are certainly bright and, therefore, investors can continue with systematic investment. 💼Asset allocation based on risk appetite should be the strategy at this juncture in the market. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼In the near-term, the bullish undercurrent of the market has the potential to outweigh the high valuations. 💼The rally is now being led by the private largecap banking stocks whose valuations are fair even after the recent run up. 💼The big FII buying of Rs 5484 crores yesterday is largely due to the massive delivery based buying in banking stocks led by HDFC Bank. 💼This delivery based buying may sustain for a few more days imparting resilience to the market. 💼The FIIs with 3.78 lakh long contracts have taken a ‘u’ turn in their market approach from the big short contracts in early June. 💼Decline in the US 10-year bond yield to 4.35 % and the dollar index declining to 105.29 are positives for fund inflows. 💼Market will start responding to the Q1 results which will start flowing in from next week. 💼 Financials are set to post good numbers. 💼lCredit growth of Bajaj Finance is excellent and this augurs well for the stock. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets