Shillong, July 11: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the ongoing market rally is transitioning from a broad-based rally to a stock-driven rally.
Despite weakness in IT and banking sectors, Nifty managed to gain 24 points on Monday, primarily fueled by Reliance Industries Limited (RIL). Bharti Airtel and Tata Motors have also contributed to the market’s resilience.
Vijayakumar stated that there are no significant triggers to drive the rally to higher levels, and global cues remain uncertain.
IANS reported that market participants will closely monitor the release of US Consumer Price Index (CPI) and Producer Price Index (PPI) data on Wednesday and Thursday. These indicators will provide insights into the rate decision by the US Federal Reserve on July 26.
The upcoming Q1 FY24 results of TCS and HCL Tech, expected tomorrow, are anticipated to be lackluster. However, if poor results lead to further corrections in IT stocks, it may create buying opportunities in the segment.
Vijayakumar noted that IT majors have a commendable track record of successfully navigating through various crises.
On Tuesday morning, the BSE Sensex surged by 446 points, reaching 65,789 points, driven by gains in Maruti, Powergrid, Bajaj Finserv, Sun Pharma, and Hindustan Unilever.
