Thursday, April 18, 2024
spot_img

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

Date:

Share post:

spot_img
spot_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_img
spot_img

Related articles

Elaborate security arrangements in place for LS polls tomorrow

SIX KILLINGS IN STATE SINCE ANNOUNCEMENT OF POLLS By Our Reporter SHILLONG, April 17: Elaborate security arrangements have been made...

Now, ex-KHADC MDC files FIR against Ardent

By Our Reporter SHILLONG, April 17: Two days after Voice of the People Party (VPP) chief Ardent Miller Basaiawmoit...

High-voltage campaigning concludes

By Our Reporter SHILLONG, April 17: Intense campaigning for the two Lok Sabha constituencies – Shillong and Tura –...

Charred remains of 3 Assam residents discovered in EGH

From Our Correspondent Williamnagar, April 17: In an incident that has sent shockwaves across both Meghalaya and Assam, the...