Market likely to consolidate amid lack of triggers
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New Delhi: BSE Sensex is down more than 200 points in Tuesday morning trade amid consolidation moves. Sensex is trading at 72,558.11 points, down 273.83 points. Powergrid, Tech Mahindra, Maruti are down more than 1 per cent.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said the market is likely to consolidate this week in the absence of any known triggers for sharp up or down moves. Since the week is a truncated week of three trading days, volumes have dipped markedly indicating absence of significant directional move.
The Fed’s optimistic message has imparted resilience to the US market and this will impart confidence in markets, globally. The strong growth momentum in the Indian economy will provide the fundamental support to the market, he said.
The recent trend of outperformance of the large-caps over the broader market, particularly the small-caps, is likely to continue. Some froth in the broader market has been removed, but small-cap valuations continue to be high, he said.
