Mumbai, March 6 (IANS) The domestic market exhibited a smart recovery in the second half on Wednesday, reversing initial losses as buying picked up in largecap stocks, said Vinod Nair, Head of Research at Geojit Financial Services.
Nevertheless, the broader index continued to underperform with profit booking in mid and smallcaps reflecting worries about stretched valuations, Nair said.
The Nifty 50 closed at 22,474.05 on Wednesday, up 118 points, or 0.53 per cent, while the Sensex settled at 74,085.99, up 409 points, or 0.55 per cent, both settling at their fresh closing peaks.
The global markets witnessed mixed signals ahead of the US Fed Chair Jerome Powell’s congressional testimony. While it’s widely expected that the Fed Chair may downplay the urgency for rate hikes, the possibility of hints regarding a potential rate cut trajectory cannot be dismissed.
Investors are banking on recent FOMC minutes, suggesting the policy rate may have peaked and higher rates could hinder growth, Nair said.
Jaykrishna Gandhi, Head of Business Development & Institutional Equities at Emkay Global Financial Services, said that for the Indian markets, one can expect the volatility to continue, with mid/smallcap seeing some selling pressure with frontline stocks holding the fort in the immediate term.
Last week, SEBI’s concerns mounted with flows into small/midcap funds. AMFI has asked the mutual funds to make more disclosures on these schemes and put in place a policy to protect investors’ interests in 21 days.
For IT services companies, weak discretionary spending, slower decision-making, and revenue conversion amid an uncertain macro environment are leading to revenue softness in this quarter as well, with an uncertain recovery timeline.
The commentary is broadly in line with the Indian IT companies, he said.
–IANS
san/arm
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
