Below is the Views On market quote by Dr. Joseph Thomas, Head of Research - Emkay Wealth Management.
“The market movements remained subdued for the most part of the week with negative indications coming from global markets especially the US. Volatility was witnessed in tech stocks continuously over the last two weeks, with some small or negligible gains later.
The Fed statement on the US economy and the discussions at the Press Conference by Fed Chairman was absorbed by the markets not in a positive way which led to a fall in the markets. Fed indicated an extended period of low rates.
An extended period of low-interest rates means three things, one, the current economic conditions are extremely distressful, two, the time taken for recovery is likely to be longer than expected, and three, an extended period of low growth. If a long-drawn struggle for growth is anticipated, it naturally has consequences for corporate profitability and earnings growth. And this may not be good for the financial markets. This was the first impression of the markets.
The banking and financial services segment has been a drag on the domestic index, followed by tech, while pharma continued to gain. The shape of the markets in the coming week would depend to a large extent on the developments around US economic numbers and how the build-up to conflicts between India and China is resolved.“
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