Published on 15/10/2022 11:45:43 AM | Source: Geojit Financial Services Ltd

Weekly Market Outlook : The domestic market also focused on quarterly earnings Says Vinod Nair, Geojit Financial Services

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Below is the Weekly Market Outlook By Vinod Nair, Head of Research at Geojit Financial Services

During the week, investors have been risk-averse due to rising geopolitical turmoil as well as worries about the global economic slump. However, as compared to global counterparts, domestic sell-off was not as aggressive since FII selling was supported by DIIs inflows. The domestic market also focused on quarterly earnings as the IT sector got off to a robust start, which improved the sector's spirits. Oil prices also decreased as a result of weak demand brought on by recessionary worries and tightening Chinese regulations, which marginally helped India. US inflation data came slightly higher than expected, raising fears of an aggressive rate hike. However, the US market rapidly recovered due to the oversold trajectory and limited upside risk to the market & economy.

We expect the rally to continue in the short-term, led by festival demand, Q2 results, and the positive trend of the global market. Buying at a dip is the best strategy in this scenario, with a focus on domestic economy-oriented stocks and sectors. The sectors which are expected to outperform are IT, pharma, FMCG, durables, green initiatives, specialty chemicals, and mass manufacturers with value buying as the theme.


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