IGI Logo

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

The domestic market passed through a volatile week, with the benchmark index underperforming its broader peers. The recent correction of the domestic market can be attributed to several headwinds, including mixed Q1 results, a reversal in FII activity, a rising dollar index & US bond yields, and an increase in crude oil prices. Pharma stocks, on the other hand, showed resilience amid the volatility due to a positive start to the earnings season and expectations of increased demand from developed economies. Furthermore, prospects of reduced US pricing issues and expanding operating margins also supported the sector. The FOMC's decision aligned with market expectations, implementing a 25bps hike and emphasising a data-centric approach for future rate actions. However, the better-than-expected US Q2 GDP data, while positive, impacted the domestic market mood as it suggested the likelihood of another rate hike. In the coming days, domestic earnings will remain a crucial driver, while global cues will also play a vital role in shaping market trends.

Above views are of the author and not of the website kindly read disclaimer