Shillong, October 4: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, global cues are currently unfavorable for markets in the near term.
As per IANS, the continuous rise in US bond yields, which has triggered ongoing selling by Foreign Institutional Investors (FIIs), shows no signs of subsiding. This suggests that FIIs will likely continue selling, putting the bulls on the defensive.
However, there are positive aspects as well. Valuations in certain segments are becoming attractive, which may prompt Domestic Institutional Investors (DIIs) and retail investors to consider buying stocks in those areas. The consequence of this complex scenario is increased market volatility.
Vijayakumar advised investors to keep an eye on stocks that exhibit strength even in a weak market. Notably, stocks like Bajaj Finance, L&T, and Zomato have displayed resilience in the face of market challenges.
Additionally, Aditya Gaggar, Director of Progressive Shares, highlighted that American and European markets are witnessing selling pressure, and technical indicators suggest further correction. In the Indian market, bears have been gaining control, with the Nifty50 starting the week on a subdued note and sectors like auto and energy putting pressure on the index, leading to a lower close.
Banking stocks will remain in focus due to factors like Q2 business updates and the ongoing Monetary Policy Committee (MPC) meeting. Divergence trade is expected to persist in the Banking, Financial Services, and Insurance (BFSI) sector, with heavyweight private banks likely to experience choppy trading, while PSU Banks may continue their upward trend with minor corrections.
Corrections are anticipated in the auto and energy sectors, while selective buying opportunities may arise in realty and power stocks.
As of Wednesday, the BSE Sensex has declined by 373 points to 65,138 points, with Axis Bank falling more than 3 percent.
