💼During a correction phase in the market, like the present one, there will always be counter moves, which will facilitate a bounce back. This can happen any time now.
💼The huge liquidity at the disposal of the DIIs can trigger this bounce back.
💼But such a bounce back is unlikely to sustain since the fundamental factors are unfavourable.
💼The Trump factor has triggered many profound changes in markets already.
💼The dollar index is strong and rising and is currently at 106.61. The US 10-year bond yield is at 4.48%.
💼These two are strong headwinds for equity markets in emerging economies like India.
💼The positive factor is the huge liquidity at the disposal of the DIIs and the sustained flows into these funds.
💼Domestically, the worry is the disappointing Q2 results and the consensus earnings downgrade.
💼How long can these flows sustain ?
How early can we expect rebound in earnings growth and strong GDP indications.
💼These are relevant questions for which we will have to wait for answers. Meanwhile investors will have to stay with quality stocks in sectors with strong demand.
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Posted on : 14 Nov 2024 10:32 AM