With the dollar index at 103.5 per cent and the US 10-year bond yield at 4.27 per cent, FIIs are unlikely to pump in as much money into the Indian market as in June and July. Chief Investment Strategist at Geojit Financial Servicesके. Vijaykumar said.
Instead of looking at the index, investors can focus on sectors like capital goods, automobiles and construction where the performance is good. “High-quality banking stocks present buying opportunities on declines.
Global cues for markets continue to remain weak. There are now two negative effects on global stock markets: One, the US Fed minutes indicate that there could be another rate hike to control inflation. “Secondly, Chinese macro data indicates that the economy is slowing down and this will have an impact on global economic growth,” he said.
In this scenario, the Indian market is unlikely to reach new heights on a sustained basis and become indistinguishable from the world. “However, rapid improvement does not seem likely,” he said.
The BSE Sensex fell 173 points to 65,366 in morning trade on Thursday ITC was down 1.7 per cent and PowerGrid was down 1.2 per cent
