Geojit Financial Services Ltd

💼A significant feature of this year’s market movements is the big variation across countries and regions. 💼The US is, by far, the best performing market with 26.17% YTD returns in S&P 500. 💼India is now underperforming with only 9.85% YTD returns in Nifty. The Euro Zone index Stoxx 50 has given only 5.14% YTD retuns. 💼The performance of the economy and expectations around earnings growth are the main factors behind this variation in performance. 💼US economy continues to be resilient, India is facing growth concerns and the Euro Zone is very weak. 💼The Trump victory has added an element of high volatility to markets. 💼From the emerging market perspective, the rise in the dollar index and the sharp spike in the US 10-year bond yield to 4.42% are causes of concern. 💼Such high yields in US bonds will facilitate more outflows from emerging markets to US. 💼This will continue to be a headwind for India. Investors should be cautious in investing in sectors like cement, metals and petroleum refining which are facing growth slowdown. 💼Safety is sectors like banking, new age digital companies, hotels, pharma and IT where growth prospects are good. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Two strong factors have been at play in this consolidating market. 💼One, the relentless selling by FIIs has been favouring the bears and pulling the market down. 💼Two, the sustained buying by DIIs has been supporting the market preventing a crash in the market. 💼How the market will trend in the coming days will depend on the relative strength of these two factors. 💼In this context, it is important to note that the intensity of FII selling is coming down ( yesterday FII selling was Rs 2026 crores) and the inflows into mutual funds is steadily increasing which will enable DIIs to continue buying. 💼Monthly flows into equity mutual funds have touched an all-time high of Rs 41887 crores in October clocking a 22% month-on-month increase. 💼This can provide resilience to the market and fundamentally strong fairly valued stocks like the leading banking names will outperform. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

Geojit’s Head Investment Strategist, Gaurang Shah speaks on the current market conditions and shares his weekly market outlook. He also shares two long-term investment ideas. Watch the video for more information. To know more online trading : https://flip.geojit.com/Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Past performance does not guarantee future returns. We do not offer any product which gives guaranteed returns. The information is only for consumption by the client and such material should not be redistributed. #marketoutlook #longterminvestment #India #GeojitOutlook #LongTermInvesting #StockPicks #SensexUpdate #InvestmentStrategy #StockMarketTips #FinancialInsights #NiftyUpdates #marketoutlook #longterminvestment #India #GeojitOutlook #LongTermInvesting #StockPicks #SensexUpdate #InvestmentStrategy #StockMarketTips #FinancialInsights #NiftyUpdates

💼The sustained rally in the US markets which have taken the Dow and S&P 500 above 40000 and 6000 respectively is no longer a tailwind for Indian markets. 💼Expectations that tax cuts promised by Trump and his pro-business policies will boost corporate earnings in US are driving the rally. 💼In India, in contrast, worse-than-expected earnings downgrades for FY25 are weighing on stock prices favouring the bears in the near-term. 💼FIIs may continue to sell and move money to US which has outperformed India so far this year. 💼However, at some point valuations in India will become attractive and this will aid trend reversal favouring the bulls for a short while. 💼The weakness in Chinese stocks consequent to the disappointing stimulus package will turn out to be positive for Indian stocks. 💼Investors should focus in segments where growth is strong like banking, telecom and new gen digital companies. 💼The positive US scenario will be good for IT companies, too. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Two divergent trends are evident in the market now: one, strength in the global market led by the US and two, weakness in the Indian market. 💼The record setting uptrend in the US market is being driven now by the ‘Trump trade’, expectations of implementation of the promised corporate tax cuts and its positive impact on US corporate earnings. 💼The weakness in the Indian market can be attributed largely to the relentless selling by FIIs which continues this month, too. 💼After the massive FII selling of Rs 113858 crores in October, FIIs have so far, in November, sold equity for Rs 16445 crores in the cash market. 💼The rationale for the FII selling is, the elevated valuations in India which appear conspicuous in the context of the earnings deceleration evident in the Q2 numbers. 💼If the Q3 numbers and leading indicators reflect recovery in earnings, the scenario can change with FIIs reducing selling and even turning buyers. 💼Investors will have to wait and watch for the data. Meanwhile, investors can consider shifting some money from the overvalued mid and smallcaps to quality largecaps. 💼This strategy will turn profitable in the medium to long run. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The Trump victory is turning out to be more potentially transformative than thought earlier. 💼With the Congress and the Senate coming under Republican control and President Trump exercising power without bothering about another term in office, hugely transformational decisions are possible in the months following Trump’s assumption of office. 💼These decisions may turn out to be both good and bad. His pro- business initiative of ‘America First’ can strengthen the American economy. 💼But if he walks his talk and imposes 60 % tariff on Chinese imports and 10 to 20 % tariff on imports from other countries, that would trigger inflation and jeopardise the Fed’s policy of containing inflation, necessitating a rethink of the Fed’s present policy of rate cut. This has the potential to negatively impact global stock markets. 💼It is important to understand that even though Trump’s anti-China policy has positive implications for India, Trump has been critical of ‘India’s high tariffs’ and won’t hesitate to impose tariffs on India’s exports to US. 💼The ‘Trump trade’ which has sharply lifted the US markets is unlikely to have similar positive impact in India since Indian market valuations are high and there are headwinds of an earnings slowdown. 💼Investors should stick to quality and value during this period of euphoria and uncertainty. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The sharp rebound in the market yesterday indicates a halt to the downward trend witnessed during the last many days. 💼The fact that the rebound is being led by fairly-valued and fundamentally strong large banking stocks is important and points to the possibility of the continuation of the trend. 💼However, the poor earnings growth in Q2 and earnings downgrades for FY 25 are headwinds that will constrain a sustained rally. 💼What is likely is stock-specific action in response to results, guidance and expectations. 💼Investors can utilise the market rallies to move from high-priced mid and smallcaps to the safety of largecaps. 💼The noise and action related to the US elections will last only for a few days, after which economic fundamentals will determine the direction of the market trend. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With all attention focused on the outcome of the US presidential election, perhaps the more important domestic economic issue is not getting the importance it deserves. 💼It is important to understand that India’s underperformance is striking: while S&P 500 is up 20.45% YTD Nifty is up by only 10.36% YTD. 💼Clearly, domestic issues are weighing on markets. With two thirds of Nifty 50 companies missing their earnings estimates in Q2, Nifty 50 earnings for FY25 has been drastically revised down to less than 10% from the consensus 15% earlier. 💼With this kind of earnings downgrade it would be difficult to sustain the current valuation. 💼This is the rationale of the relentless FII selling which might continue for some more time. 💼Investors can opt for the safe strategy of remaining invested and accumulating stocks in segments which can weather the volatility. 💼Apart from leading financials, auto stocks like Eicher Motors and M&M have exhibited earnings momentum and improving prospects, going forward. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With Nifty returning 25 percent and Nifty 500 returning 30 percent in Samvat 2080, investors should be happy. 💼But the 6.2% correction in October, the first above 5 percent correction in 54 months, has triggered anxiety over the market performance, going forward. 💼Of serious concern is the relentless FII selling in October amounting to Rs 113858 crores through the exchanges. 💼Given India’s elevated valuations and concerns over deceleration in earnings growth, FII selling might continue, impacting the benchmark indices. 💼In such a scenario investors should focus on stock-specific investment where Q2 results have been good and earnings visibility is bright. 💼The latest data regarding banking indicates that deposit growth has caught up with credit growth and this augurs well for banking stocks which are fairly valued. 💼Public capex is likely to pick up in H2 FY 25 and this augurs well for cement stocks. 💼Pharma stocks like Sun Pharma and Cipla have good earnings visibility. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets