Markets pares some of its early gains
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Markets pared some of its early gains as investors resorted to selective buying due to uncertainty over higher inflation levels, simmering West Asian conflict and its impact on the global economy.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Buoyancy in Asian equities boosted gains in local shares as falling US treasury yields and softening crude oil prices buoyed sentiment, despite weakness in the Gift Nifty index.”
Vinod Nair, Head of Research at Geojit Financial Services says, “The Indian market is resurging amidst a drop in investors’ anxiety as Nifty VIX contracts generously.”
The optimism is buoyed by firm global clues, steady macro-economic data and strong domestic corporate earnings.
Clues that FED is unlikely to hike rates in the future and modest decline in oil prices are adding to the optimism. While the ongoing Q2 results explore healthy expansion in Indian operating margin, leading to a strong bounce in earnings growth. In the midst of the earnings season, large cap companies indicate a solid 40% growth in PAT on a YoY basis.
And moderation in global inflation and steady domestic and external demand is lifting H2 corporate earnings outlook.
