Shillong, August 17: The dollar index at 103.5 and the US 10-year bond yield at 4.27 per cent suggest that Foreign Institutional Investors (FIIs) might not inject more funds into the Indian market as they did during June and July.
As per IANS, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlights the importance of sector performance over index movements. Sectors like capital goods, automobiles, and construction are expected to draw investor attention. Additionally, high-quality banking stocks present potential buy opportunities during market dips.
Global market cues remain weak due to two key factors. Firstly, US Federal Reserve minutes hint at the possibility of another rate hike to curb inflation.
Secondly, recent Chinese macro data suggests a more significant economic slowdown than previously anticipated, impacting global growth. Consequently, the Indian market may not sustainably break into new highs or disconnect from the global trends. While a substantial correction is deemed unlikely, a robust breakout is equally improbable.
As of Thursday morning, the BSE Sensex is down by 173 points at 65,366. ITC and Powergrid shares have declined by 1.7% and 1.2%, respectively.”
