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Below the Views on Morning market 28th September 2026 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited?

"Two apparently contradictory trends - in the economy and markets-  deserve attention. The economy is resilient and corporate earnings are improving, but the market is steadily going down. This is a case of external headwinds overpowering domestic tailwinds. Brent crude at $106 and the US 10-year yield at 5.2% are strong headwinds that are weighing on markets. FPIs, after turning buyers in July and August have again turned sellers in September. This scenario will keep the market under pressure in the near-term. 

From the market perspective an important trend is that even though FPIs are sellers in large-caps, they continue to buy mid-and small-caps despite their elevated valuations. The broader market is where the momentum is. This is likely to be a short-term phase. 

The valuation differential between large-caps on one side and mid-and small-caps on the other, will not last long. A reversion to mean is inevitable. This will happen only when crude and US bond yields cool."

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