Geojit Financial Services Ltd

💼Market is likely to remain volatile in the near-term alternating between FII selling and DII buying. 💼Attractive valuations in other markets, particularly in Chinese stocks, will facilitate further selling by FIIs in India since Indian valuations are elevated. 💼Concerns of earnings downgrades in H2 FY 25 render Indian valuations difficult to sustain. 💼However, the sustained flows into the domestic mutual funds, where monthly SIPs have set a new record of Rs 24500 in September, will ensure that all FII selling will be easily absorbed by DII buying. This has been the trend in October so far. 💼A healthy trend in the market is the leading private sector banks getting accumulated and showing resilience even in a weak market. 💼This is the most attractively valued segment in this market where there is no valuation comfort. 💼Lot of stock-specific action can be expected in the coming days in response to Q2 results. Banking and IT are likely to post reasonably good results. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼There are no immediate near-term triggers that can take the market sharply up or down. 💼Up moves may attract selling by FIIs who are likely to move some more money to China and Hong Kong since these markets are cheap and is witnessing uptrend now. 💼But FII selling is unlikely to push the market down significantly since the ample domestic liquidity can easily absorb such selling. 💼A range-bound market is the near-term scenario and, therefore, the real action will be stock-specific. 💼Since there is no valuation comfort in the market now and the mid and smallcap segments are overvalued, investors should give priority to safety and prefer largecaps. 💼Bank Nifty has more potential to move up and there is valuation comfort in this space. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations. 💼In India metal stocks rallied in response to the Chinese stimulus measures. 💼It remains to be seen whether the Chinese monetary stimulus will have an enduring positive impact since China’s economic woes are structural and difficult to address through a monetary stimulus. 💼It is more likely that the positive sentiments now being felt may soon dissipate and weaken. 💼The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. 💼If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty. There is more steam in this segment. . . . #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #GeojitOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼Two trends deserve attention. The serious global geopolitical concern continues to be the Middle East where things are getting worse. 💼Israeli strikes on Lebanon has killed hundreds of people triggering concerns. Crude has inched up. 💼Gold and the volatility index are moving up reflecting anxiety. However, the market remains resilient and the undertone continues to be bullish. 💼Investors have to take a call based on these two trends. 💼The preference for quality and fair value is getting stronger in India as reflected in the continuous rise in Bank Nifty for the eighth straight session. 💼The return of FIIs into the market in September will aid recovery in frontline banking stocks. 💼SEBI’s latest warning about 93% of individual traders losing money in the F&O market should be taken seriously. 💼It is unfortunate that while systematic investors are making good money the vast majority of individual traders are losing money. 💼The primary responsibility of conserving and growing one’s hard earned money rests with the individual. Earlier the individual traders realise this, the better for them. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #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 on Smartfolios - https://smartfolios.geojit.comTo know more on Partner Program - https://partner.geojit.comTo know more about Global Investments - https://www.geojit.com/globalinvestmentsTo invest in Mutual Funds - https://fundsgenie.in/#/loginTo read our Insightful Articles - https://blog.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. #stocktips #consolidationphase #longterm #investment #SIP #stockmarket #mutualfunds #sharemarket #Investmentstrategy #invest #sensex #trading #stocks #sectors #investing #economy #stockmarket #marketupdates #GeojitGaurangShah #GeojitOutlook #GaurangShah #stocktips #consolidationphase #longterm #investment #SIP #stockmarket #mutualfunds #sharemarket #Investmentstrategy #invest #sensex #trading #stocks #sectors #investing #economy #marketupdates #GeojitGaurangShah #GeojitOutlook #GaurangShah

💼The charging bull got a shot of steroids from the Fed when it cut interest rates by 50bp on September 18th. 💼More than the rate cut, it was the Fed chief’s optimistic commentary that lifted the markets sharply. 💼The signal from the Fed is that inflation is under control and the economy is unlikely to tip into recession. 💼This message is positive for equities, positive for emerging markets and positive for India. 💼Nifty now appears to be moving to its next target of 26000 which is only 210 points away. 💼The move towards this target is likely to be led by the banking majors which are showing strong momentum. 💼There are two factors favouring banking stocks now: one, the FIIs who were major sellers early this year have turned buyers and they are likely to buy more banking stocks which are even now fairly valued in this highly valued market. 💼Second, the credit-deposit gap which has been impacting banks’ margins has started narrowing. 💼In brief, accumulation is likely in banking stocks and this has the potential to push the market up. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The Dow and S&P 500 setting yet another record highs yesterday is indicative of the strength of this ongoing global bull run led by the mother market US. 💼The good labour market data from the US indicates that the labour market is only slowing, not deteriorating. 💼With inflation under control, this means the US is set for a soft landing under a declining interest rate scenario. 💼This is positive for global equity markets. 💼A significant trend in India is the outperformance of Bank Nifty which is up two percent this week against Nifty’s rise of 0.2%. 💼Weakness in the broader market on valuation concerns is another important trend. These trends are likely to continue. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The big Fed rate cut by 50 bp has the potential to take equity markets into a consolidation phase with an upward bias. 💼The Fed chief Powell’s remark that “ we have gained greater confidence that inflation is moving sustainably towards 2%” is a very optimistic commentary of the US economy. 💼At the same time US growth continues to be solid and labour market is good. 💼More rate cuts are expected from the Fed, going forward. The rate projections are 4.4% by end 2024 and 3.4% for end 2025. 💼These will be big declines from the present 4.75 to 5% rate. 💼The rate cuts by the Fed will pave the way for rate cuts in India, too. CPI inflation coming below the RBI’s target of 4% during the last 2 months will facilitate rate cuts . 💼Two rate cuts of 25bp each are possible in India before March 2025. 💼In brief the market scenario is turning favourable for rate-sensitives, particularly banking. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The significance of the Fed rate decision expected tonight is evident from the wait and watch market mood across the globe yesterday. 💼Perhaps more important than the Fed action would be the Fed commentary and the message. 💼An ideal and possible outcome would be a 25 bp rate cut with a dovish message indicating a series of rate cuts. 💼Good retail sales data along with weakening labor market point to such a possibility. 💼India’s August trade data indicate stagnant exports and rising imports. The consequent rising trade deficit can weaken the INR, if the trend persists. 💼This means exporters like IT will benefit. Pharma, chemicals and textile exporters too will benefit. 💼The time is favourable for reducing the exposure to mid and small caps and increasing the exposure to largecaps. 💼This strategy will play out well in the medium to long run. . . . #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets