Geojit Financial Services Ltd

💼In the near-term the market is likely to be range bound since there are no major triggers till the budget. 💼Since the valuations are high, particularly in the broader market, any significant up move will invite selling from the FIIs. 💼If the market trends down DIIs and retail investors will pursue buy on dips strategy that has worked very well in this market. 💼Sustained flows into mutual funds, particularly through the SIP route, and the retail investors eager to buy any dip will keep the market resilient. 💼Investors should now take a medium to long-term view and remain invested in the market focusing on fairly valued largecaps. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼There is good news on the inflation front, both in the US and in India. 💼In US May CPI inflation has declined slightly less-than-expected to 3.3% with MoM inflation remaining flat. 💼However the economy continues to remain strong and there are no clear signs of labour market loosening. 💼Therefore, the Fed chief Jerome Powell has kept rates unchanged and has hinted at only 1 rate cut in 2024 and possibly 4 rate cuts in 2025. 💼In India May CPI inflation has declined to 4.75% and core inflation has come at only 3.1%. This paves the way for a rate cut by the MPC in October. 💼The takeaway from the inflation numbers is that the disinflation process is well on track. 💼From the market perspective, this is positive news, particularly for banking stocks. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼The 32% decline in India VIX during the last 5 days indicates that the days of heightened volatility are over and the market has entered a consolidation phase. 💼 From now on the focus will be on fundamentals and news flows. 💼There is a recent trend of investors/ speculators chasing momentum stocks with low floating stock and excessive valuations. 💼This is a risky trade which investors should avoid. 💼The focus of investors should be on fairly valued quality growth stocks. Here, financials come on top. 💼This segment has the potential to give decent returns in the medium to long term. 💼IT stocks also have valuation comfort. 💼Tonight’s US inflation numbers and the Fed policy outcome will influence the direction of global equity market. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼A strong pillar of support for this bull market has been the mutual fund industry which is witnessing sustained inflows. 💼The Rs 34697 crore net inflows into equity funds in May and monthly SIP inflows touching Rs 20904 in May indicate that this domestic support to the market will continue despite the FII selling. 💼 FIIs turning buyers during the last two days and covering their shorts will support the market in the near-term. 💼BJP keeping the key portfolios signals continuity in policies. 💼This is a positive from the market perspective. 💼From the fundamental perspective, the 25 % increase in corporate profitability in FY24 augurs well for the market. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼After the roller coaster ride last week the market is likely to take a breather in the near-term. 💼It is important to understand that the major driving force in this bull market is the Indian retail investors including HNIs. 💼 Big selling by FIIs is getting eclipsed by the aggressive buying of DIIs and retail investors. 💼The fact that retail investors bought equity for Rs 21179 crores on June 4th, the day Nifty tanked 5.9%, indicates the buying power and optimism of the retail investors. 💼This is a structural long-long term trend. 💼 FII selling on concerns of high valuations will be easily absorbed by DII plus retail buying. 💼So, if FIIs swim against this trend, they will underperform in one of the best performing stock markets in the world. 💼That said, retail investors should not chase highly valued mid and small caps. Safety is in largecaps. . . . #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate #StockMarket #inflation #EconomicOutlook #InvestmentOpportunity #EmergingMarkets #MarketUpdate

💼In the near-term, the market is likely to be weighed down by the huge FII selling which has touched Rs 24960 crores cumulatively during the last three days. 💼 Therefore the largecaps in sectors like financials and IT where FIIs have huge assets under management may underperform. 💼 This trend will change when FIIs turn buyers, which is inevitable. 💼Meanwhile long-term investors can accumulate these high quality largecaps where margin of safety is high in an otherwise highly valued market. 💼There is excessive speculative activity in stocks where the floating stock is very low. 💼 Retail investors venturing into these speculative activity is highly risky. 💼Today’s monetary policy meet is not expected to impact the market since any rate action by the MPC is unlikely. #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets #StockMarket #inflation #EconomicOutlook #MarketUpdate #InvestmentOpportunity #EmergingMarkets

💼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