Treading with caution: Markets to remain under valuation pressure (IANS Forecast)
Wednesday - July 21, 2021 2:45 pm , Category : BUSINESS
Mumbai, July 21 (IANS) High valuation along with fears over rising Covid cases globally (is/are) expected to subdue the domestic equity indices in the remaining trade session of the ongoing week.According to market watchers, inflationary and growth concerns will continue to impact investors' sentiments.The key equity indices were closed on Wednesday on account of Eid.For the week so far, NSE Nifty50 is down 1.83 per cent after making multiple tops on weekly charts in the 15,901-15,962 band.Besides, market watchers, expect some mild recovery till the 15,962 level is not breached, however, possibility of a correction still remains.Over the last three sessions, the NSE Nifty50 fell from a high of 15,962 to a low of 15,578, which is a fall of 2.4 per cent.At the same time, BankNifty has fallen from a high of 35,977 to a low of 34,357, down by 4.5 per cent."Over last 3 days, we have seen the markets to be under pressure led by weak global cues coupled with weak results by banking major HDFC Bank,"said Gaurav Garg, Head of Research at CapitalVia Global Research."SGX Nifty is trading around 15600 levels which shows even further weakness, even after DOW closed almost 500 points up yesterday. Hence, markets are expected to show some bearishness."According to Deepak Jasani- Head of Retail Research at HDFC Securities: "Patchy Monsoon rain in India and subdued Q1FY22 corporate results have raised fresh concerns on the economic growth and market valuation.""Overall, the valuations in the market remain high and there is little more upside possible as far as the benchmark indices are concerned."