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Below Perspective On Markets By Mr. Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services

“Last week Nifty had a runaway rally as we kick start earnings season with large cap IT names beating estimates on margins helped by cost optimisation. Management commentary around discretionary spending remained weak.

This week markets took a turn today with Nifty banks falling ~4% as HDFC bank share price slipped 7% on concerns around slowdown in deposit growth. As talks around rate cuts continue and as banks struggle with balancing credit growth vs margins, we are likely seeing a tactical rotation towards good quality NBFCs

As street is baking in good earnings growth for most mid  cap names, Incrementally flows will be driven on how close actual releases come vs expectations built.”

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