Analysts anticipate cautious market sentiment until the GDP data release on Friday. (AI image)
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Nifty’s attempt to break the 2024 September high and set a new record is facing resistance particularly from resumption of big FII selling which touched Rs 4171 crores in the cash market yesterday. The global clues are mixed today: the rally in the US markets and expectations of a 25 bp rate cut from the Fed are positive for global equity markets.” “But the sharp 2.69% rally in Nasdaq and the big rebound in Mag 7 stocks will again trigger fears of an AI bubble. India will benefit on a sustained basis only when the AI trade weakens and money starts flowing into EMs like India and into non- AI stocks. An important takeaway from Q2 results is that midcaps are outperforming largecaps in revenue and profit growth. This explains the resilience of the midcap index which set a new record recently. The picture may again favour largecaps when the Q3 numbers indicate revival of earnings growth in largecaps. In largecaps, top names in telecom, automobiles, private and PSU banks, NBFCs and capital goods will remain resilient with potential to rally. Smallcaps, in general, will be weighed down by elevated valuations.”US stocks rose on Monday, continuing Friday’s upward trend. Investors focused on increased possibilities of a December Federal Reserve funds rate reduction, overlooking concerns about tech stock valuations.Foreign portfolio investors offloaded shares worth Rs 4,171 crore on Monday. In contrast, domestic institutional investors purchased shares valued at Rs 4,513 crore.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
