Sunday, September 14, 2025
spot_img

Concerns persist on inflated valuations in mid and small-cap stocks, say analysts

Date:

Share post:

spot_imgspot_img

Shillong, March 24: Amidst mixed signals from global peers, investor sentiment remained volatile, influenced by uncertainties surrounding pivotal policy decisions from major central banks, says Vinod Nair, Head of Research, Geojit Financial Services.

The unexpected interest rate hike by the Bank of Japan post 17 years and the ECB’s choice to maintain rates contributed to subdued market sentiment. However, the market rebounded following the Fed’s indication to proceed with three interest rate cuts this year, despite inflation remaining above the long-term target, he said.

Last week’s mid & small-cap could recover as buying improved led by continued DIIs & FIIs inflows. The IT sector faced headwinds driven by global slowdown in spending. Investors redirected attention towards the realty sector, which emerged as the top performer of the week, he said.

The bounce is expected to continue in the short-term as traders punt to buy when the market is trading at oversold territory. However, concerns persisted regarding inflated valuations in mid and small-cap stocks and large caps are expected to outperform in the medium term, he said.

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said next week being a truncated week and the derivatives’ monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels. Also, US GDP data and other key economic data would keep investors busy. (IANS)

spot_imgspot_img

Related articles

Police arrest fiance of RG Kar student found dead in hotel room in Bengal’s Malda

Kolkata, Sep 14 : The police on Sunday arrested the fiance of the female medical student of RG...

Even our tears haven’t dried yet: Pahalgam victims’ family on India-Pakistan match

Bhavnagar (Gujarat), Sep 14 : As India's cricket team gears up to face Pakistan in the Asia Cup,...

Hyderabad Police deport Sudanese national after arrest in drug cases

Hyderabad, Sep 14 (IANS) Hyderabad Police have deported a Sudanese national, who was arrested in two drug cases...

TN launches pilot AI, robotics programme in govt schools

Chennai, Sep 14 : Exposure to Artificial Intelligence (AI), robotics and digital tools is no longer confined to...