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Below is the market quote 27 April 2021 By Mr. S Hariharan, Head- Sales Trading, Emkay Global Financial Services

“The impact of high commodity prices have started showing up in CPI inflation prints and forced RBI’s hand to reduce accommodation and open up a path for higher rates starting from Jun. Tighter financial conditions are unfavourable for valuations of mid & small caps and the outlook favours defensive posturing for portfolios. IT stocks have been seeing meaningful short build-up going into results despite expectations of strong numbers as well as demand commentary – fears of a US slowdown are serving to dampen valuation across all IT stocks, especially so in mid-cap IT space. Banks are expected to post strong numbers for the quarter – higher inflation initially aids credit growth and this is expected to show up in robust NII growth as well as NIMs. Foreign flows are expected to remain subdued on account of tightening global liquidity conditions and hence, FPI flow is likely to be negative in the short term..”

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