Indian markets face strong headwinds

There are strong headwinds, each globally and domestically, that may influence the market within the near-term, stated V.Ok. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global headwinds are from the rising greenback index at 103.23 and spiking U.S. bond yields, he stated.

Consequently, FIIs are promoting, taking their money market promote determine in August, until fifteenth, to Rs 9,867 crore.

Domestically, the foremost headwind is the rising inflation, he stated.

July CPI inflation has come at 7.44 per cent, which is 1 per cent above consensus estimates. The CPI inflation for FY’24 must be revised upwards to five.6 per cent. The takeaway from that is {that a} price reduce might be anticipated solely in H2 of CY24, he added.

This is unfavourable for price sensitives. So, the banking sector, which has been a stress level for the Nifty is prone to expertise extra near-term ache. But for long-term buyers, the correction might be a chance because the sector is doing effectively and valuations are honest.

Defensives like prescription drugs and IT might be comparatively secure within the near-term. Rupee will flip weak, he stated.

BSE Sensex is down 80 factors at 65,321 factors in Wednesday morning commerce.

(With inputs from IANS)