Geojit Financial Services Ltd

💼The market is in a consolidation phase, and this is likely to continue. 💼There are no major triggers for aggressive buying or selling. 💼Even in this consolidation phase the undertone of the market is bullish and , therefore, buying on dips will emerge imparting resilience to the market. 💼Strong up moves will attract profit booking and, therefore, sustained rally would be difficult. 💼Even when the market consolidates, leading private sector banking stocks have the potential to move up further. 💼 Large delivery based buying is happening in this segment. 💼This is perhaps the only segment which offers value in this overvalued market. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The current distinct trend in the market is the sectoral churn happening somewhat strongly. 💼Huge money is flowing into fairly valued largecaps in banking and profit booking is happening in sectors like capital goods, telecom, metals and FMCG. 💼This churn is likely to continue in the near-term since it is a healthy trend. 💼The overvalued broader market space also is taking a breather. 💼The money flows into the market continues unabated. 💼The trend of FII selling also appears to be over since they have turned big buyers yesterday posting positive buy number for June. With both FIIs and DIIs turning buyers, the market is likely to remain resilient. 💼But high valuations can trigger profit booking and selling anytime. 💼Largecap banks continue to be safe bets and there is contra value buying opportunity in IT stocks which are facing temporary headwinds. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Higher highs and higher lows are clear indicators of a strong bull rally. 💼This is happening now in the Nifty which has set four days of record highs. 💼Net institutional activity has turned positive with both FIIs and DIIs turning buyers. 💼The US 10-year bond yield declining to 4.21 % may nudge FIIs to buy more. 💼This is pushing FII-heavy stocks like HDFC bank and ICICI bank which have more room to appreciate since their valuations are fair. 💼Economic news continue to be positive. Net direct tax collections have shot up by 21%. 💼More important, advance tax collections have increased impressively by 27.38 % reflecting robust economic activity. 💼In brief, it is advantage bulls. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The undercurrent of the market continues to be bullish. 💼Sustained huge domestic flows is the principal driver of this rally. 💼 It is also important to understand that there is fundamental support to the rally from the strong economic growth and good corporate earnings. 💼Global support from the mother market US, which is setting new records, also is a positive factor. 💼Since Nifty is currently trading at around 21 times FY 25 estimated earnings, there is no room for further sharp rally from the current levels. 💼 Liquidity flows may sustain the outperformance of the broader market. But valuation comfort in this space is extremely low. 💼 So investors may focus on fairly valued largecaps, particularly in the banking space and also the leading auto stocks where the high valuations can be justified by their growth prospects. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼In the near-term the market is likely to be range bound since there are no major triggers till the budget. 💼Since the valuations are high, particularly in the broader market, any significant up move will invite selling from the FIIs. 💼If the market trends down DIIs and retail investors will pursue buy on dips strategy that has worked very well in this market. 💼Sustained flows into mutual funds, particularly through the SIP route, and the retail investors eager to buy any dip will keep the market resilient. 💼Investors should now take a medium to long-term view and remain invested in the market focusing on fairly valued largecaps. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼There is good news on the inflation front, both in the US and in India. 💼In US May CPI inflation has declined slightly less-than-expected to 3.3% with MoM inflation remaining flat. 💼However the economy continues to remain strong and there are no clear signs of labour market loosening. 💼Therefore, the Fed chief Jerome Powell has kept rates unchanged and has hinted at only 1 rate cut in 2024 and possibly 4 rate cuts in 2025. 💼In India May CPI inflation has declined to 4.75% and core inflation has come at only 3.1%. This paves the way for a rate cut by the MPC in October. 💼The takeaway from the inflation numbers is that the disinflation process is well on track. 💼From the market perspective, this is positive news, particularly for banking stocks. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The 32% decline in India VIX during the last 5 days indicates that the days of heightened volatility are over and the market has entered a consolidation phase. 💼 From now on the focus will be on fundamentals and news flows. 💼There is a recent trend of investors/ speculators chasing momentum stocks with low floating stock and excessive valuations. 💼This is a risky trade which investors should avoid. 💼The focus of investors should be on fairly valued quality growth stocks. Here, financials come on top. 💼This segment has the potential to give decent returns in the medium to long term. 💼IT stocks also have valuation comfort. 💼Tonight’s US inflation numbers and the Fed policy outcome will influence the direction of global equity market. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼A strong pillar of support for this bull market has been the mutual fund industry which is witnessing sustained inflows. 💼The Rs 34697 crore net inflows into equity funds in May and monthly SIP inflows touching Rs 20904 in May indicate that this domestic support to the market will continue despite the FII selling. 💼 FIIs turning buyers during the last two days and covering their shorts will support the market in the near-term. 💼BJP keeping the key portfolios signals continuity in policies. 💼This is a positive from the market perspective. 💼From the fundamental perspective, the 25 % increase in corporate profitability in FY24 augurs well for the market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼After the roller coaster ride last week the market is likely to take a breather in the near-term. 💼It is important to understand that the major driving force in this bull market is the Indian retail investors including HNIs. 💼 Big selling by FIIs is getting eclipsed by the aggressive buying of DIIs and retail investors. 💼The fact that retail investors bought equity for Rs 21179 crores on June 4th, the day Nifty tanked 5.9%, indicates the buying power and optimism of the retail investors. 💼This is a structural long-long term trend. 💼 FII selling on concerns of high valuations will be easily absorbed by DII plus retail buying. 💼So, if FIIs swim against this trend, they will underperform in one of the best performing stock markets in the world. 💼That said, retail investors should not chase highly valued mid and small caps. Safety is in largecaps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate