Friday, July 12, 2024

Results of IT majors struggling with weak numbers impacting market

The market is likely to be weighed by results of IT majors which are struggling with weak numbers on revenue guidance for FY24 and lack of clarity on growth recovery, says V. K. Vijayakumar, the Chief Investment Strategist at Geojit Financial Services.

Leading banking names have the strength to continue supporting the market, he said.

“There are two major macro trends that can influence the market. The global trend is slightly negative while the domestic trend is largely positive.

“The US retail inflation for September at 3.7 per cent came slightly higher than expected. The implication of this higher inflation trend is that the fight to bring the US inflation to the long-term target of 2 per cent will take more time and, therefore, rates will remain higher for longer. This will restrain a rally in equity markets,” he said.

The domestic macros have turned distinctly positive with the CPI inflation in September falling steeply to 5.02 per cent and the IIP for August rising impressively to 10.3 per cent. This implies that the MPC can pause for the rest of FY 24 and go for a rate cut in Q2 of CY24, he added.

BSE Sensex is down 428 points at 65,980 points on Friday. Infosys is down more than 2 per cent.

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