Geojit Financial Services Ltd

💼 The signals from the market are a bit confusing as it has ignored the sharp slowdown in Q2 GDP growth and remains resilient despite massive FII selling. 💼 There are many likely headwinds from the Trump presidency, and valuations are elevated with Nifty trading around 20 times estimated FY26 earnings. 💼 In this context, investors should adopt a cautious investment strategy with asset allocation as the underlying principle. 💼 Since the market has been resilient amidst challenges, it makes sense to remain invested. 💼 Those with lower risk appetite can consider moving some money from overvalued mid and small caps to large caps and debt. 💼 News of Rs 71,722 crores of defence order proposals will keep defence-related stocks on the radar today. 💼 FIIs turning buyers is a positive factor that can help large caps remain resilient. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The underlying resilience of the market is evident in its ability to bounce back. The market is focusing not on the GDP growth slowdown but on the likely policy response to this slowdown. 💼 Banking stocks bouncing back yesterday indicates that the market is expecting a CRR cut on Friday, which will boost the profitability of banks. 💼 The strength in market heavyweights like Reliance and HDFC Bank can impart resilience to the market. 💼 The net FII sell figure at only Rs 238 crores yesterday is misleading since it conceals many large bulk deals. 💼 News of higher GST proposals on products like tobacco can impact stocks like ITC, while tax reductions on insurance premiums can be beneficial to insurance stocks. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The Q2 GDP shocker of 5.4% will weigh on markets, but the impact is unlikely to be big since part of the declining growth was factored in by the market after the disappointing Q2 results. 💼 A sharp cut in the market, if it happens, can be an opportunity to buy since the DIIs will continue to buy during dips. 💼 The question is: what to buy? Segments like pharma, telecom, and digital companies, which are not impacted by the slowdown, can be bought on declines. 💼 In the context of the growth slowdown, the RBI is likely to cut the CRR on 6th December. 💼 The MPC is unlikely to cut rates when CPI inflation is running at 6.2%. 💼 CRR cut will be positive for banks, and, therefore, banking stocks are likely to be resilient. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 A perplexing market action in recent days is the inexplicable volatility in FII activity. 💼 A few days of buying followed by yesterday’s massive selling of Rs 11,756 crores is difficult to explain. 💼 What are the factors contributing to this apparently irrational activity? Is this a one-off? Or, is there more to come? Answers to these questions will be available in the coming days. 💼 It is better for investors to wait and watch. Lots of stock-specific actions are likely starting today in response to the inclusion of 45 new stocks to the F&O list. 💼 Buy-on-dips strategy may not yield short-term gains in this market. But this strategy can be applied by investors with a medium to long-term time horizon. 💼 Large caps in financials, IT, capital goods, and telecom are ideal for accumulation from a medium to long-term perspective. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼 The consolidation phase in the market is likely to continue in the near term. A clear positive for the market is the cessation of relentless selling by the FIIs. 💼 This will give confidence to the retail investors to again start buying aggressively. But there is no room for such high optimism. 💼 Strong dollar is a negative for emerging markets and, therefore, FIIs are unlikely to turn aggressive buyers. 💼 Also, large institutions would prefer to wait and watch for clarity on Trump’s policies and their likely impact on trade and the global economy. 💼 Market action could be stock-specific in response to news flows, like in the case of Adani stocks. 💼 A healthy trend in the market is the fundamentally-driven up move in quality banking stocks. 💼 The resilience in the health care segment can sustain. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼President-elect Trump has already started declaring what he intends to do immediately on his taking office on January 20th. 💼25% tariffs on Mexican and Canadian imports and an additional 10% tariffs on Chinese imports have already been announced. 💼How these countries react to these tariffs remains to be seen. Trump has declared only 10% additional tariffs on Chinese imports indicate that he will be careful not to trigger imported inflation in the US. 💼Market participants will be closely watching this trade space which has become unpredictable. 💼India is unlikely to be impacted in the initial phase of Trump’s tariff plan but may come under Trump’s radar soon since India has trade surplus with the US. 💼Market is likely to consolidate around the current levels since there are no immediate triggers for a breakout or a break down. 💼A major market concern from relentless FII selling is receding since they have turned buyers, though marginally. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The two-day rally in the market is unlikely to sustain beyond a point since earnings concerns are major headwinds. 💼The impact of short covering and the positive sentimental effect of the Maharashtra election results will be temporary. 💼Too much should not be read into the FIIs turning big buyers yesterday since that was due to MSCI rebalancing with higher weightage to HDFC Bank. 💼Leading banks will remain resilient due to consistent buying and reasonable valuations. 💼In the coming days attention will be focused on what President Trump will do. 💼Trump’s selection of Scott Bessent as the Treasury Secretary is a positive from the market perspective since he is regarded as a fiscal conservative. 💼This can help bring down the bond yields in US thereby favouring EMs. But as of now, the dollar index above 107 is a headwind. 💼A sustained rally in the market can happen only when indicators of earnings revival emerge. This is sometime away. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The ability of the market to surprise was evident in the 557 point spurt in the Nifty on Friday. 💼This sharp upswing will continue today assisted by the super NDA performance in Maharashtra. 💼The political message from this election is huge and highly positive from the market perspective. 💼A significant feature of the Friday rally was the sharp spurts in many largecaps with some stocks shooting up by more than 4%. 💼This clearly indicates short covering, which will keep the market resilient today. 💼Whether the rally will continue beyond a couple of days remains to be seen since the earnings headwinds will continue to constrain the bulls. 💼Banking and IT are on strong wicket assisted by fair valuations and reasonable growth prospects. 💼Watch out for capital goods, telecom and pharma stocks. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼There are some important takeaways from the market trends in the present context. 💼The Russia-Ukraine war has escalated with Russia firing even Inter Continental Ballistic Missiles. 💼The relentless selling by FIIs continues with the selling spree reaching a record continuous 37 days. 💼But the market has corrected only by about 11% from the September peak. 💼This is a correction, not a crash. The mother market US is bullish with 25.43% return YTD. These factors suggest that the undertone of this market is positive. 💼The market can recover from the present levels since yesterday’s selling was largely due to the fall out of the Adani issue. 💼But considering the headwinds the market is facing, a sustained recovery is unlikely. 💼The strength in the broader market should not be confused with the fundamental strength of the segment. 💼The strength of the broader market, particularly the midcaps, is due to liquidity and not fundamentals. 💼Fundamental strength and safety are in large-caps. Banking and IT are fairly valued. FMCG, metals and Oil& Gas are weak. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets