Mumbai, November 16 (IANS). Regarding the domestic market, trade experts say that the market is in an improving situation and after reaching the peak recently, the main indices, Nifty and Sensex have fallen by about 10 percent.
Last week, after showing sharp weakness on Tuesday and Wednesday, Nifty continued its decline amid range movement on Thursday and ended the day with a fall of 26 points.
After opening on a slightly negative note, the market attempted a minor bounce in the early part of the session.
According to market watchers, weakness in Q2FY25 results and continued outflow of foreign funds weighed on sentiment.
On the other hand, a rise in domestic CPI inflation to a 14-month high of 6.2 per cent, a stronger dollar index and a rise in US 10-year yields indicate that volatility will continue in the near term.
“Investors are rushing to reduce their positions in riskier assets as premium valuations will not be sustainable without reasonable earnings growth,” said Vinod Nair, head of research, Geojit Financial Services.
According to Nagaraj Shetty of HDFC Securities, the market needs to show more evidence to consider a possible bullish reversal.
“A decisive fall below 23500 could pull Nifty down to 23,200-23,000 levels by next week. However, a sustained move above 23,700-23,800 levels could open the possibility of a bigger bounce in the market,” he said.
Amid the shock in H1FY25, investors are expecting some improvement in H2FY25 earnings on the back of pickup in government spending, good monsoon and improvement in rural demand.
Consolidation may continue in the near future; However, beaten down value stocks may see a decline due to their prospective outlook.
The Sensex is currently at 77,580.31, while the Nifty is at 23,532.70.
“Going forward, the focus will be on developments in the Donald Trump administration in the US and its impact on emerging markets (EMs),” market analysts said.
The policy proposals are likely to exert pressure on US inflation, which could influence the direction of the Fed’s interest rate cuts in the future.”
–IANS
SKT/KR
