New Delhi: The performance of large-cap stocks has been influenced by Foreign Institutional Investors (FIIs) remaining net sellers in the market.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the ongoing results season will play a pivotal role for investors in adjusting their portfolios. Additionally, market sentiment will be influenced by factors such as the Bank of England (BoE) policy and GDP data from the Eurozone.
“We anticipate a period of consolidation in the market due to high valuations and potential election-related uncertainties,” he commented.
Nair emphasized that FIIs’ continued presence as net sellers in the market has impacted the performance of large-cap stocks.
A marginally better-than-expected performance in Q4 earnings and a decline in oil prices contributed to a positive start in the domestic market for the week. However, a mixed trend in the global market ensued following the Federal Reserve’s decision to maintain the status quo on policy, expressing caution regarding sustained high inflation. This resulted in a widespread correction in the domestic market.
Nair noted that positive commentary from auto companies regarding recent volume numbers propelled the sector’s outperformance. Furthermore, there was notable stock-specific activity observed in the banking and power sectors, driven by positive Q4 results and increased power demand.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, expressed expectations of market consolidation within a broader range.
