IGI Logo

Below the Quote on Market by Krishna Appala, Sr. Research Analyst, Capitalmind Research

"It has been a muted week for the markets, largely driven by a global sell-off after the US Federal Reserve signalled a slower pace of future rate cuts. This cautious outlook resulted in significant declines in major US indices, with the Dow Jones dropping 4% and the Nasdaq 100 falling 2.5%. On the domestic front, the Nifty 50 declined by 2.4% this week, extending its overall drawdown to 8.7% from its recent peak. However, Mid and Smallcap indices showed relative resilience, with the CNX Midcap falling 4.6% and the CNX Smallcap slipping 2.7%, reflecting selective investor confidence in broader market opportunities.

The markets are becoming increasingly stock-specific while the broader indices take a pause. Several key events are influencing the current sentiment, including the upcoming US presidential regime change with Donald Trump set to take office in January, and the Indian Union Budget announcement just weeks away. Additionally, the Q3 earnings season carries muted expectations, leading market participants to adopt a wait-and-watch approach.

Amid this cautious environment, we maintain a bullish outlook on new-age, platform-based technology companies. These firms are demonstrating strong domestic growth, improving operational efficiencies, and achieving profitability, positioning them well to cater to India’s growing consumer base and mitigate risks associated with global uncertainties. A balanced investment strategy that combines the stability and fair valuations of large caps with tactical exposure to profitable, domestic-focused tech companies offers a prudent approach to capturing growth potential while managing geopolitical and policy risks."

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