Investors will be closely watching Q4 results in the upcoming week, as per Vinod Nair, Head of Research at Geojit Financial Services. The auto sector is expected to have positive results in Q4, while the IT sector is facing a correction trend due to global uncertainties.
At the beginning of the new financial year, the market started strong, with mid & small-caps performing well. However, towards the end of the week, volatility increased due to US bond yields, crude oil prices, and geopolitical tensions. Despite the RBI’s policy meeting meeting expectations, concerns about food inflation and a heat wave tempered market sentiment.
“Investors are expected to closely monitor developments in the upcoming week as Q4 results are unveiled,” said Vinod Nair, Head of Research, Geojit Financial Services. “The auto sector anticipates positive results in Q4 due to volume growth in the premium segment and higher price realisation, while weakness in the commercial vehicle and tractor segment continues owing to a high base and lower reservoir level.” He further added, “However, the ongoing correction trend in the IT sector, influenced by global uncertainties, is anticipated to persist in the medium term, particularly with muted quarterly expectations.”
According to Nair, the market started the new financial year on a strong trajectory, with mid & small-caps outperforming. Banks also provided a return of 2.4 per cent, supported by robust deposit & credit growth data. However, towards the end of the week, volatility rose due to a surge in US bond yields and crude oil prices, as well as escalating geopolitical tensions. Despite the RBI’s policy meeting aligning with expectations, concerns surrounding food inflation and alerts of a heat wave tempered market sentiment.
