New Delhi, March 27: Market experts foresee a continuation of the consolidation phase for a few more days before a new directional trend emerges in April, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Vijayakumar emphasized the bullish undertone of the market, supported by robust economic fundamentals. He highlighted a significant structural trend of sustained inflows into equity mutual funds, which are gaining momentum. This influx is expected to bolster market resilience, with downturns being met with buying interest.
The resurgence of activity in mid-cap stocks, particularly by retail investors, has caught attention. Unlike large caps, mid-caps are witnessing minimal institutional selling pressure, contributing to increased retail investor participation.
Predicting the sectoral dynamics, Vijayakumar suggested that financials, along with capital goods and automobiles, are poised to lead the rally in early April. He cited impressive credit growth in the economy, hovering around 20%, as a factor propelling banks’ profitability. Additionally, he expressed optimism regarding the upcoming Q4 results of banks, anticipating positive outcomes.
Deepak Jasani, Head of Retail Research at HDFC Securities, noted mixed sentiments in Asian stocks on Wednesday, diverging from the continued rally in the US market. Wall Street witnessed a slight downturn after a sustained rally, prompting investors to rebalance their portfolios. Cocoa futures experienced volatility, briefly surging above $10,000 a metric ton before retracing gains.
In the domestic market scenario, the BSE Sensex surged to 72,985.62 points, marking a gain of 515.32 points on Wednesday. Maruti recorded a notable 3% increase, reflecting positive sentiment in the automotive sector.
As investors navigate through market fluctuations, expert insights provide valuable guidance for strategic decision-making, ensuring informed investment choices amid dynamic market conditions.
