V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that there is no consistency in the behavior of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) this month. They have been engaging in alternating bouts of buying and selling, leading to a range-bound market. The market is currently waiting for triggers to break out or break down from this range.
Vijayakumar highlighted that a potential negative trigger could be a slightly hawkish statement from the Federal Reserve, postponing the expected rate cuts that the market anticipates starting by March 2023. The upcoming U.S. Consumer Price Index (CPI) inflation data will provide clues regarding this.
The third-quarter results season is commencing with companies like TCS and Infosys reporting results. According to Vijayakumar, financials, capital goods, telecom, automobiles, and hotels are expected to post good numbers, while IT results may be tepid, and FMCG results will be a mixed bag.
Deepak Jasani, Head of Retail Research at HDFC Securities, noted that U.S. stocks finished higher on Wednesday, and Asian stocks, as well as U.S. and European equity futures, rose ahead of inflation data that will impact Federal Reserve policy. Jasani also mentioned that the Securities and Exchange Commission approved several spot Bitcoin exchange-traded funds for the first time.
As of Thursday, BSE Sensex is up 105 points at 71,763 points, with Indusind Bank and Axis Bank up 1%.
(With Agency Inputs)
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