Shillong, July 24: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the near-term market trend will be shaped by various factors. These include recent Q1 results, upcoming major corporate announcements this week, and crucial policy decisions such as the outcome of the US Federal Reserve meeting on Wednesday.
Vijayakumar notes that despite some disappointment in the top and bottom lines, the Q1 results of Reliance Industries Limited (RIL) are positive when considering the performance of the company’s growth engines, Jio Infocom and Reliance Retail. Both segments show promise and are expected to improve in the future.
ICICI Bank stands out in the banking universe with an impressive 40% growth in net profit and notable loan expansion. Kotak Bank has also delivered strong results.
As per IANS, while certain banking stocks are strong and resilient, earnings growth may face pressure due to Net Interest Margins (NIMs) remaining under strain in the coming quarters. Consequently, a sustained rally might prove challenging.
The US Federal Reserve is expected to raise rates by 25 basis points on Wednesday. However, the market’s direction will largely hinge on the Fed chief’s commentary regarding future inflation and rate trends. Investors may adopt a cautious approach and observe these developments.
As of Monday morning, the BSE Sensex is trading at 66,471 points, with a marginal increase of 46 points. Kotak Mahindra Bank, however, is experiencing a decline of 3.5%.
