He said rising geopolitical tensions in the Middle East as well as supply concerns have pushed up crude oil prices, impacting overall market sentiment.
Investors' hopes of a rate cut in June were dashed due to higher than expected US inflation, positive US employment and manufacturing data.
On the domestic front, FIIs are remaining cautious given weak fourth-quarter corporate earnings expectations and premium valuations of mid-cap and small-cap stocks, Nair said.
While the IT sector remains in consolidation due to weak Q4 earnings, reduced spending and uncertainties over US policy rates, profit-taking is evident in banking stocks, especially in PSU banks, as credit growth to the banking sector is slowing, and Valuation has been high for a long time. -Term average, he said.
In contrast, the auto and realty sectors are showing resilience due to expectations of strong earnings momentum. He said India's CPI points to a modest increase in inflation in the near term and industrial production may show signs of moderation.
“We expect the market to remain volatile in the near term given global concerns,” said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services. With the onset of earnings season, the focus will shift more to macro data points as well as domestic cues. Markets will react to India inflation data and TCS Q4 numbers on Monday,” he said.
Investors' hopes of a rate cut in June were dashed due to higher than expected US inflation, positive US employment and manufacturing data.
On the domestic front, FIIs are remaining cautious given weak fourth-quarter corporate earnings expectations and premium valuations of mid-cap and small-cap stocks, Nair said.
While the IT sector remains in consolidation due to weak Q4 earnings, reduced spending and uncertainties over US policy rates, profit-taking is evident in banking stocks, especially in PSU banks, as credit growth to the banking sector is slowing, and Valuation has been high for a long time. -Term average, he said.
In contrast, the auto and realty sectors are showing resilience due to expectations of strong earnings momentum. He said India's CPI points to a modest increase in inflation in the near term and industrial production may show signs of moderation.
“We expect the market to remain volatile in the near term given global concerns,” said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services. With the onset of earnings season, the focus will shift more to macro data points as well as domestic cues. Markets will react to India inflation data and TCS Q4 numbers on Monday,” he said.
