Comment :: What are the positives and negatives in this market?
The major negative in the market continues to be the sustained selling by FIIs, triggered by the high bond yields in the US. This selling by FIIs, in both equity and debt, will continue to weigh on markets so long as the US bond yields remain high, which, in turn, will be decided by the US inflation numbers. The latest US core PCE inflation numbers came in on expected lines with 2.8 % YoY growth. Consequently the bond yields have marginally drifted down and the US equity markets surged last Friday. FII selling will continue, but is likely to be lower than in recent days.
ICICI bank results are very good. Impressive growth in deposit and credit and decline in NPAs augur well for the stock. HCL Tech’s low guidance of 3 to 5% revenue growth in FY25 will weigh on the stock.
Views by: V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
