A significant recent development is the liquidity in the banking system moving from deficit to surplus. This is positive for banks, particularly those which are facing constraints in raising deposits to match credit growth. The impact on the market would be the outperformance of Bank Nifty over Nifty.Another trend which has started is the underperformance of the small cap index. This trend also is likely to continue since small cap valuations continue to be excessive. Nifty is likely to consolidate at around the present levels. Dips will be bought since institutional buying has been strong. Sentiments are a bit weak in the NBFC space due to RBI’s restrictive actions against some NBFCs.
Comments
Post a Comment