The market dipped miserably but prudence saved some stocks. Profit booking could be the only factor to talk about by FIIs post a three-month rally. Obviously sentiment related to a big stock that gave way towards noon could have wedged many on the erroneous foot. Although feeble international cues can’t be ignored for long, the domestic market could try a revival after yesterday’s unexpected sell-off.
The lofty stock evaluations have raised worries without any adequate development in fundamentals. Nevertheless, Thursday is a new day. The bulls are eager to return to winning ways; particularly bearing in mind India’s comparatively improved positioning in relation to other financial systems. A level to optimistic opening is likely to happen. In general, the market will stay uneven with substitute fits of climb and plunge based on how international cues play out. The recuperation in financial expansion and corporate proceeds will take time to match with market performance.
Although mid- and small-caps are likely to bounce back on Thursday, it’s important to be cautious of these class of stocks. A discerning, secured approach is needed till there is complete lucidity on the financial front, both domestically and internationally. A forceful plan at this phase is likely to invite some trouble. Thus, stay with quality forefront shares as they are expected to direct whenever the likely recovery in GDP development and earnings take place.
In the cash section, FIIs remained net sellers on Wednesday at Rs.3.64bn whereas the local institutions registered Rs.5.69bn. The foreign finances remained net sellers at Rs.13.26bn in the F&O section. FIIs remained net sellers at Rs.7.12bn in the cash section and mutual funds remained net buyers of Rs.86mn on Tuesday.
Opto Circuits, Prithvi Info, Dish TV, Kernex Micro, TV Today and Zee News will declare their results today.