There are too many challenges for the market in the near-term. Brent crude at $94, the dollar index above 105, the two-year US bond yield at 5.09 per cent and the INR at record lows against the dollar are strong headwinds, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
To add to these headwinds, now there is the disappointing news of the likely compression of NIMs of HDFC Bank, which might temporarily impact sentiments in Bank Nifty, he said.
The straining of relations between India and Canada is unlikely to have any lasting impact on the market.
The hectic activity in the mid- and small-caps has pushed valuations in these segments to high levels. The sharp rise in many of these stocks has been driven by hope. It remains to be seen whether this hope will translate into reality. Execution challenges may arise.
Investors may adopt a cautious strategy of staying with high quality large-caps, he added.
In the broader market, the valuations of reasonably good PSU banks like BoB, Canara Bank and Indian Bank are even now attractive, he said.
BSE Sensex cracked in morning trade and is down 625 points at 66,946 points. HDFC Bank is down more than 3 per cent.
VC funding drops 22.5 pc in China in Jan-Nov as India sees surge
As venture capital (VC) funding surged in India this year, China saw a 22.5 per cent decline in VC funding by both volume and value in the January-November period, a report showed on Thursday.
Indian share market opens in green, Nifty above 23,800
At around 9:37 am, Sensex was trading at 78,744.55 after gaining 271.68 points or 0.35 per cent, while the Nifty was trading at 23,812.50 after gaining 84.85 points or 0.36 per cent.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.