Geojit Financial Services Ltd

💼As the market comes back to normalcy after the abnormal volatility of the last three days, the global construct has turned favourable with rising possibility of rate cuts by the Fed. 💼Clear signs of weakening labour market in US has led to sharp decline in the US bond yield to 4.29 %. 💼Even though this is favourable for foreign capital inflows, the FIIs continue to sell on high valuations in India particularly in comparison to the cheap valuations of Chinese stocks. 💼In the near-term we have political stability but political developments will continue to weigh on markets. 💼A concern in the market is that the BJP’s dependence on allies might put economic reforms on the back burner impacting growth and thereby corporate earnings in the long run. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The market will take some time to absorb the unexpected election results. 💼 Stability will return to the market soon but volatility will continue till there is clarity on the cabinet and the key portfolios. 💼A sharp rebound in the market is unlikely in the near term but sectoral preferences might change. 💼Sectors like FMCG, healthcare and IT will find increasing preferences and the momentum plays will slowdown. 💼One positive of the sharp market correction is that the excessive valuations have moderated a bit and this will facilitate institutional buying once clarity emerges on the formation and composition of the cabinet. 💼Investors can start nibbling at high quality largecaps in IT, financials, autos and capital goods. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼With the 733 point rally in the Nifty yesterday the market has already discounted a clear win for the NDA and majority on its own for BJP. 💼Only a dramatic change from this expected outcome will cause a major change in the market. 💼Investors need not rush in to buy today even if the results confirm the exit polls. 💼 Remain invested in largecaps and do some profit booking in smallcaps. 💼A significant trend yesterday was the largecaps outperforming smallcaps. 💼This is primarily the consequence of FIIs turning buyers. 💼If the FIIs continue to buy, this largecap outperformance will continue. 💼RIL, L&T, HDFC, ICICI and M&M are on strong wicket. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Fundamentals, technicals and sentiments turning favourable at the same time is rare in the market. This is what has happened now. 💼The market went into the big event, elections, very light with Nifty correcting around 600 points from the May highs. 💼 Profit booking also happened on a large scale. The short position in the market also is high. 💼All these are going to change dramatically. 💼DIIs, HNIs, retail ….are all going to turn buyers. 💼Short-covering can add to the momentum. 💼The rally is likely to be led by largecaps. 💼Stocks like RIL, ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank, Bajaj Finance, Bharti Airtel, L & T, M&M, Tata Motors, Bajaj Auto, Eicher Motors are fundamentally strong largecaps with potential to lead the rally. 💼IT stocks like TCS, Infy, HCL Tech, Coforge, Persistent and L&T Tech offer contrarian buying opportunity. 💼The GDP numbers which came on Friday was better than expected with 8.2% growth. 💼This will provide fundamental support to the market. 💼S&P’s upward revision of India’s rating outlook also is positive. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The market is tantalisingly poised with the possibility of a sharp move based on the exit poll results tomorrow evening. 💼 Since the Nifty is down around 600 points from the May high, if the market move is up it can be sharp and swift. 💼 Largecaps in financials, autos, capital goods and telecom have the potential to lead the rally. 💼On the other hand, if the exit polls indicate a trend unfavourable from the market perspective, again the crash can be sharp and swift. 💼It is important to note that the DIIs have bought stocks for Rs 53618 crores in the cash market so far this month. 💼This is around Rs 10000 crores more than the FII selling. 💼 The DIIs have enough funds to buy aggressively if the situation turns favourable. 💼Data from the US indicate that the economy is slowing down and the labour market is turning a bit weak. 💼This means the Fed may not delay rate cuts much longer. 💼If this happens and the US bond yields start declining that can reverse the FII outflows. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼A question which most investors/traders are asking now is, what should be the best investment/trading strategy in this volatile time. 💼There is no simple answer to this question. 💼One strategy is to remain calm, watch the event and take a decision after the election outcome. 💼Put options are very expensive now and trying to hedge through put options will have a high price. 💼There will be heightened volatility on 3rd and 4th June. 💼If the exit polls indicate a clear trend, which is favourable from the market perspective, buying decision will be easy even after a spike in prices. 💼A major concern is the spike in US bond yields pushing the 10-year yield above 4.6%. 💼This can trigger continuation of the FII selling which will depress the prices of largecaps further. 💼The highly valued mid and smallcaps remaining resilient and the fairly valued largecaps turning weak is a short-term aberration. 💼 Long-term investors can profit from this temporary aberration. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The nervousness in the market continues on uncertainty regarding the election results. 💼An important sustaining trend during this uncertain phase is the continuous buying by DIIs which has reached around Rs 45000 crores so far this month. 💼This can be interpreted as a reflection of expectation of political stability after the election results. 💼However, it appears that retail and HNIs are in a wait and watch mode. FII selling intensity has slowed down considerably recently. 💼From the global perspective, there are positives as well as negatives. 💼The positive is the Nasdaq setting a new record high imparting resilience to the mother market. 💼The negative is renewed tensions in the Middle East pushing up Brent crude to $ 84.5. 💼The US 10-year bond yield rising to 4.54% is indication that the “higher for longer” rate regime in the US might continue. 💼This will weigh on FII inflows once the election-related uncertainty is over. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼As we approach the election results a bit of nervousness is visible in the market. 💼The sharp correction in Nifty in the afternoon yesterday indicates this nervousness. 💼This uncertainty-led nervousness is likely to continue. 💼A high possibility is the market getting a clue of the election results earlier than June 4th. 💼This can happen any time and can trigger a big move in the market. 💼Bank Nifty has the potential to move towards 50000 and go past that level in the event of sharp rally in the market. 💼Trading may prove to be very risky in the near-term. 💼Investors can buy largecaps on declines. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼As we move into the last week of trade before election results the market is near record highs. 💼Sharp short covering in index futures and huge delivery based buying in frontline stocks like HDFC Bank have contributed to the strength of the market. 💼Even though Nifty is near record highs, Bank Nifty is 2% away from its peak. 💼This indicates the potential of frontline banking stocks to move up further. 💼Another positive for the market is that the FII selling which weighed on the markets this month has declined sharply and FIIs even turned big buyers on Thursday. 💼The pharma sector has consistently turned out good results in Q4. 💼This is one of the preferred sectors of institutions and HNIs now. 💼The election related uncertainty may cause some volatility but is unlikely to cause any major jitters this week. 💼The market is likely to largely discount the results before declaration on June 4th. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets