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Below Perspective on markets by Mr. S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services

“The earnings season thus far has met or beat expectations – however, individual stocks reporting results have not reacted favourably to good results. This reflects a consensus state of positioning and points to a period of digesting gains at the headline index level. The other notable feature of market action over the first half of Jan has been muted market volumes, despite elevated institutional activity – FIIs have been net sellers worth $2.5 bn in Jan so far, which has been set off by DII net buying. Retail segment is conspicuous by their absence in market action and is a slightly concerning factor for overall market conditions. A reopening of Chinese economy is understandably attracting most institutional attention and as a result, expensive valuations in India have acted as a major factor in the propensity for FIIs to be net sellers – this is expected to continue in the near-term, and would be an overhang for Financials sector.”

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