Views on Morning Market 14th October 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Views on Morning Market 14th October 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
A significant takeaway from the last one year market performance is the outperformance of large caps (Nifty up by 1.05%) and the underperformance of smallcaps ( Nifty Smallcap index down by 4.77%). Equally significant is the outperformance of PSU banks ( Nifty PSU bank index up by 16.77%) and the huge underperformance of IT ( Nifty IT down by 16.5%). One common feature in these trends is the valuation. IT stocks, particularly the largecaps, are viewed as overvalued by the market since they are facing many headwinds and some strong structural issues. On the other hand PSU stocks have been trading at very low valuations despite decent growth and robust balance sheets. This anomaly in valuations have been corrected by the market. This trend is likely to continue. However, in growth stocks like digital companies and renewable energy, their long-term growth potential will continue to attract investment despite high valuations.
With Muhurat trading approaching, there is room for a mild rally.
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