Weekly Market Outlook : This broad-based correction is particularly evident in sectors with excessive valuations from Vinod Nair, Head of Research at Geojit Financial Service

09-11-2024 05:47 PM | Source: Geojit Financial Services Ltd.

Weekly Market Outlook : This broad-based correction is particularly evident in sectors with excessive valuations from Vinod Nair, Head of Research at Geojit Financial Service

News By Tags | #Sensex #ExpertViews #MarketOutlook #Nifty #BankNifty #GeojitFinancialServicesLtd #VinodNair

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel

Below the Quote on weekly market outlook from Vinod Nair, Head of Research, Geojit Financial Services

"The Indian market continues to experience consolidation due to heightened selling pressure from FIIs, driven by concerns over weak corporate earnings and premium valuations. This broad-based correction is particularly evident in sectors with excessive valuations. Additionally, the anticipated slowdown in domestic Q2 GDP growth has further dampened market sentiment. Conversely, the appealing valuations of other Asian peers and ongoing stimulus measures by China are also contributing to the underperformance of the national market. China has now announced a new debt refinancing plan with a raising of the debt ceiling by 6 trillion yuan from 29.52 trillion yuan aimed at easing the local government’s fiscal pressures.

The recent rebound in India's domestic manufacturing activity is a positive sign. This year government spending is expected to be back ended due to general elections this year, so there is a leading expectation of improved corporate earnings in H2FY25. The festive season in Q3 is likely to revive consumption, which should support market sentiment and will aid find a floor in the near future.

On the global front, the conclusion of the US elections and a strong Republican majority have reduced political uncertainty, providing relief to global markets. The FED’s recent 25 bps interest rate cut, which was in line with expectations, also offers some support. For the upcoming week, key economic data points to watch include the Index of Industrial Production (IIP) and inflation. Consensus expects an increase in inflation in the short-term and an expansion in IIP. The market will continue to be influenced by Q2 earnings, Trumponomic policies, and actions by FIIs. The US market is expected to outperform the rest of the market in the short to medium-term."

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

IGI Logo

Weekly Market Outlook : This broad-based correction is particularly evident in sectors with excessive valuations from Vinod Nair, Head of Research at Geojit Financial Service

Top News

Tag News

More News