Morning Market Quote : Investors should keep in mind two important features of the near-term trend in stock markets Says Dr. V K Vijayakumar, Geojit Financial Services
Below the Morning Market Views from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
"Investors should keep in mind two important features of the near-term trend in stock markets. Globally, the markets are weak and jittery on concerns arising from the tariff policy uncertainties. This is likely to linger and may even get worse as reciprocal tariffs kick in from early April. In this scenario there is no scope for a sustained recovery in global markets. In fact further downtrend is likely.
However, even in this negative backdrop, the Indian equity market is showing some resilience. The fact that despite the sharp correction in US markets yesterday, Nifty recovered about 150 points from the lows and closed in positive territory, is an indication of the recent resilience and outperformance of the Indian market. This trend has fundamental support from leading indicators that suggest growth recovery and decline in inflation. India’s macros are looking much better now than say a month ago and this can continue to support the market.
It is difficult to call the bottom of this downtrend. However, investors should understand that valuations are attractive in many segments and the risk-reward is favourable if investors have a long-term time horizon of three years."
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