The brokerage believes that one will get a better sense of sustainability of the investment cycle in the next few days as companies in the capital goods sector report their earnings and give guidance on near-term order inflows, and the government presents its interim budget, which will give guidance on government capex for FY25.
According to analysts at Kotak, the market is either overestimating the market size and profitability in several sectors or underestimating ‘disruption’ risks in some sectors.
Foreign institutional investor activity remains a focal point, given their substantial net sales exceeding Rs 35,000 crore in the Indian equity market this month, said Santosh Meena, head of research at Swastika Investmart Ltd. Beyond domestic factors, the market will be influenced by the global landscape, including geopolitical developments and movements in US bond yields, the dollar index, and crude oil prices. Read more:
