Markets running out of steam, FMCG stocks lead decline

BSE Sensex is down 213 factors at 71,812 factors on Monday. FMCG stocks are down with HUL by 1.5 per cent. Marico is down 4 per cent, Godrej Consumer is down greater than 3 per cent.

The year-end rally which took the Nifty up by round 14 per cent from the 2023 October lows, is slowly running out of steam, says V.Okay. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The main problem for the rally comes from the US market which is exhibiting indicators of weak point. The concern within the US now could be that the market expectation of a price minimize in March could not materialise for the reason that labour market continues to be tight and the unemployment information is decrease than anticipated.

Inflation coming underneath management signifies that the speed mountaineering cycle is over and the Fed pivot is imminent. But the market will probably be disenchanted if the speed minimize would not occur in March. The signal of this doable pattern may be seen within the firming up of the 10-year US bond yield above 4 per cent, he mentioned.

The exuberance of retail traders could also be a constructive issue which could push up the already frothy broader market. But revenue reserving by DIIs and seasonally weak January can affect the rally.

Long-term traders can use dips available in the market to purchase top quality banking stocks that are pretty priced, he added.

(With inputs from IANS)