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💼 There are indications of exhaustion in the market rally, particularly in the broader market. 💼Higher valuations are constraining the bulls and there are no major positive triggers in the near-term that can sustain the rally beyond a point. 💼Expectations of backloading of the rate cuts from the Fed and the consensus lowering of the number of rate cuts this year also are likely to restrain the rally in the mother market US. This will have its repercussions in Indian market too. 💼Kotak small cap joining Tata and Nippon small cap funds in putting restrictions on investment in their small cap fund is another red flag regarding the excessive valuations of the small cap segment. 💼 Investors should take cues from this and partially move money to the safety of large caps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The global market construct continues to be favourable. With S&P 500 setting newer records the mother market US has turned very resilient . 💼 Japanese Nikkei at record highs is another pillar of support for global markets. Even though high valuation in India is a matter of concern, it is unlikely to impact the market much in the near-term. 💼Cheap valuation in China is not attracting foreign investors. The market leadership is now with fundamentally strong bluechips like Reliance, ICICI Bank and Bharti. 💼Sustained buying by DIIs ( Rs 21700 crores in February so far) supported by HNIs and retail investors has completely eclipsed the FII selling. 💼FIIs have lost in this tug of war with DIIs since the market has been scaling new highs despite FII selling. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 This global bull run led by the mother market US is showing no signs of exhaustion. In the US the rally is being led by the tech stocks . 💼Nvidia’s excellent results have sparked a rally in all AI related tech stocks. This is having its repercussions in the tech stocks in India, too. 💼The steady climb of the Nifty setting records after records is an indication that the buy on dips strategy is working. This trend may continue. 💼But very soon we are likely to have a days of sharp corrections when DIIs resort to some profit booking and FIIs continue to sell persuaded by the high US bond yields which are likely to remain high for sometime. 💼Fed rate cut expectations are much lower than at the beginning of this year. That too will start exerting pressure on the market. Long-term investors should remain invested in this bull market. 💼Partial profit booking from the overvalued mid and small caps and moving the money to high quality large cap banks and fixed income would be a safe strategy in the present context. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 The underlying strength of the ongoing market rally is getting widely acknowledged. This explains the FII buying, though marginal, yesterday when the US 10-year bond yield is around 4.3 percent. 💼DIIs have been smart to buy continuously when the FIIs have been selling. So, for DIIs there is room to book some profits, which they did yesterday. 💼In the tug of war between FIIs and DIIs in recent years, DIIs have been the clear winners. So, watch out for the DII action. 💼An important trend now is the huge delivery based buying in the private banks, which are even now attractively valued in this market with elevated valuations. 💼Switching from over-valued mid and small caps to large private banks would be a smart move. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 With seven days of record intraday highs this year Nifty is exhibiting great strength. 💼 The big emerging market worry of rising bond yields in the US is not impacting India since FIIs have been forced to reduce their selling since they are being completely neutralised by sustained DII buying assisted by retail exuberance. 💼This resilient domestic buying is providing the main support to the ongoing rally in the market, and the strong performance of the economy and improving corporate earnings are solid fundamental support to the market. 💼The fact that the fairly valued large private banks are now contributing to the rally is a positive signal. This has the potential to sustain. 💼But the irrational exuberance in pockets of the broader market is unlikely to sustain. Retail investors should not be carried away by this exuberance. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼 An important characteristic of bull market is its ability to set new successive record highs. And this market has been doing this consistently. 💼 This year alone Nifty has set 6 new record highs ( intraday) and this is indicative of the strong momentum in the market. 💼Selling by FIIs, triggered by rising bond yields in US, is having no impact on this up trending market where DIIs ( bought Rs 17850 crores in February so far) and domestic HNIs and retail investors are calling the shots. 💼High quality fundamentally strong largecaps like RIL, ICICI Bank and Bharti taking up the leadership in the rally is positive for the bulls. 💼Also it is important to remember that large caps have valuation comfort in this market where segments of the broader markets have tipped into frothy valuations. 💼Since the Bank Nifty is around 4% away from its record high, more action is likely in banking stocks. In the near-term volatility will be high. Sharp corrections can happen at any time. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼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

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💼 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