Following several days of gains, bulls took a break as Indian benchmark indices fell today in anticipation of Japan’s monetary policy announcement.
View of the Market
“The market’s continuous strong rally is being driven by two important factors. In the last two weeks, FIIs that made a “u” turn in their strategy have become big buyers, having invested approximately Rs 20000 crores, including bulk purchases. Second, industries like banking and IT, which have long been underperforming, are driving the rally.All factors, both domestic and international, except valuations, are favourable to the market. It makes sense to keep investing, especially in large-cap stocks. In mid- and small-cap stocks with extremely high valuations, some profit booking may be justified.