IGI Logo

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

The domestic market sailed through a rough week, facing unexpected ups and downs as it hovered around its historical peaks and exhibited cautiousness stemming from weak global cues. This volatility was more evident in mid- and small-cap stocks, which witnessed increased selling as investors booked profits following a strong recent rally. In the global context, central banks worldwide are currently focused on addressing inflation and have reiterated their commitment to achieving their target levels.This is reflected in the hawkish commentary from the Fed Chair and the rate hikes by the central banks. Conversely, the decision of Chinese central banks to cut rates after a 10-month pause has raised concerns about the health of the Chinese economy. Despite these global concerns, the domestic market is not anticipated to undergo a significant correction. This is due to favourable domestic economic indicators and a correction in international commodity prices, which are expected to sustain earnings growth on a QoQ basis.

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