IGI Logo

"The clear dovish message from the  Fed yesterday has set the stage for a smart Santa Claus rally in the coming days, and this can even trigger a pre-election rally that can take the markets to a series of new highs.
The takeaway from the Fed message yesterday is that the tightening cycle is over and three rate cuts are possible in 2024. The market expects four. The record breaking rally in the Dow will send many indices to new records.

The crash in the US 10-year yield to 4% will trigger large capital flows to India. The main beneficiaries will be the large caps, particularly the fairly valued large caps in banking. IT too is likely to attract buying.
Retail exuberance can lift the mid and small caps, too; but there is no valuation comfort in this segment." 

 

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