Weekly Market Outlook: Domestic Market in Correction Terrain: Nifty, Sensex Down 10% Says Vinod Nair, Head of Research at Geojit Financial Service

14-11-2024 06:27 PM | Source: Geojit Financial Services Ltd

Weekly Market Outlook: Domestic Market in Correction Terrain: Nifty, Sensex Down 10% Says Vinod Nair, Head of Research at Geojit Financial Service

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Below the Quote on Weekly Market Outlook by Vinod Nair, Head of Research, Geojit Financial Services

"The domestic market is in correction terrain; from the recent peak, the main indices, Nifty and Sensex, have corrected around 10%. Weakness in Q2FY25 results and sustained outflow of foreign funds weighed on the sentiment. On the other hand, a spike in domestic CPI inflation to a 14-month high of 6.2%, a firm dollar index, and a rising US 10-year yield signal that the volatility will continue in the short term. Investors are rushed to unwind their positions in the riskier assets as the continuity of the premium valuation without a fair earnings growth will not be sustained.

The muted H1FY25 results increased the scope of further downgrades in the FY25 Nifty EPS estimates. We factor a 2 to 3% downward revision in the Nifty EPS estimate for FY25. Amid a setback in H1FY25, investors see some light in H2FY25 earnings on account of acceleration in government spending, a good monsoon, and a revival in rural demand. Consolidation may continue in the near term; however, the beaten-down value stocks may witness bottom fishing due to their potential outlook. Going ahead, the focus will be the developments from the Trump administration and its implications towards the EMs. The policy proposals are likely to add upward pressure on US inflation, which may impact the future Fed rate cut trajectory."

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Weekly Market Outlook: Domestic Market in Correction Terrain: Nifty, Sensex Down 10% Says Vinod Nair, Head of Research at Geojit Financial Service

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