Stock Market LIVE Updates: GIFT Nifty indicates a flat start; US markets fall, Asia gains post Fed rate cut
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The midcap and smallcap segments, particularly sectors like defense, railways, and capital goods, which have performed exceptionally well over the past 2-3 years, are now witnessing a sharp correction.
Valuations have long been a concern in the broader market, yet these stocks continued to rally despite being considered expensive. However, there always comes a point when market euphoria fades. Domestic institutions, too, have shown signs of caution, holding significant cash reserves at elevated levels.
I believe this correction could extend further, presenting a strong buying opportunity in high-quality stocks for long-term investors.
Company | CMP | Chg(%) | Volume |
---|---|---|---|
Hindustan Aeron | 4,202.85 | -5.27 | 105.36k |
Bharat Elec | 269.75 | -4.63 | 942.80k |
ABB India | 7,426.25 | -4.61 | 10.37k |
BHEL | 253.65 | -4.36 | 523.33k |
Rail Vikas | 506.45 | -4.17 | 734.23k |
Suzlon Energy | 78.80 | -2.52 | 7.39m |
Polycab | 6,496.65 | -2.51 | 7.11k |
Praj Industries | 719.00 | -2.38 | 59.64k |
GMR Airports | 91.90 | -2.23 | 486.31k |
CG Power | 726.30 | -2.21 | 42.36k |
V-Guard Ind | 454.35 | -1.88 | 10.52k |
Grindwell Norto | 2,328.10 | -1.79 | 2.10k |
Thermax | 5,124.30 | -1.75 | 2.11k |
Lakshmi Machine | 15,875.00 | -1.35 | 333 |
Schaeffler Ind | 3,800.05 | -1.34 | 773 |
Larsen | 3,685.10 | -1.19 | 23.28k |
Bharat Forge | 1,559.10 | -1.09 | 15.45k |
Sona BLW | 709.95 | -1.07 | 54.66k |
SKF India | 5,337.10 | -1.03 | 1.95k |
Finolex Cables | 1,389.50 | -1.03 | 5.99k |
A deeper than expected cut in policy rate and positive commentary by the US Fed indicate soft landing for the US economy. This should nudge central bankers in emerging markets, including the Reserve Bank of India, to cut rates. We expect only 50 BPS cut in repo rate in India by March 2025. We are positive on short- and medium-term bonds.
Rate cut augurs well for flows into risky assets including Indian equities. Current valuations may make foreign investors go slow on Indian stocks.
Market participants are expected to take some profits. Profits should be booked in IT stocks. Nifty 50 index may remain sideways. Fresh longs on Nifty50 can be considered only above today’s high of 25611, for a target of 25850. Stock specific trades on the long side can be considered in select names in FMCG and sugar sector. Metal stocks should be on the traders’ radar, as rate
The Fed’s 50 bps rate cut is positive for Indian equities, boosting market liquidity. This puts pressure on the RBI to follow suit, signaling support for economic recovery.
We anticipate a 25 bps rate cut from the RBI, which would further aid growth and strengthen market sentiment.
#1 Management highlighted smart metering as a new high-growth area
#2 B2C interface is rising with access to 12+ m consumers in the Mumbai distribution business
#3 Capital management program focus is on reducing volatility in interest costs
#4 Reducing volatility in interest costs will be done via long-tenure bonds & execution-backed growth