2024-11-14 06:27:58 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
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."
Above views are of the author and not of the website kindly read disclaimer
Disclaimer:
The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references.
To Read Complete Disclaimer
Click Here
