India underperforms Asian rivals amid earnings and valuation strain
Indian stocks are facing losses while other economies see gains. This is due to a global AI investment frenzy benefiting chip makers like Samsung Electronics and SK Hynix. India lacks direct AI exposure, leading to lower corporate earnings growth. Foreign investors are seeking better returns elsewhere, impacting the Indian market.
Why global fund managers are giving D-St the cold shoulder
Foreign investors have significantly reduced their holdings in Indian equities, driven by slowing earnings growth, the AI boom in South Korea and Taiwan, and rising oil prices coupled with a falling rupee. This shift has led to substantial outflows, with strategists predicting a slowdown in selling but a slow return to popularity for Indian markets.
Pimco CIO sees risk of US Fed hiking rates due to Iran war
Geopolitical tensions in Iran, potentially disrupting oil supplies and raising energy prices, could prompt the Federal Reserve to delay interest-rate cuts and even consider hikes. This development complicates the Fed’s efforts to curb inflation, with experts suggesting a more hawkish stance might be necessary globally.
Undertone bullish, but Nifty faces resistance at 24,600
Indian stock market benchmark Nifty is currently trading within a narrow range. Analysts observe mixed signals, with a bullish structure intact but facing resistance. Traders are awaiting a clear direction. Key levels to watch are 24,600 as resistance and 23,800 as support. Bank Nifty also shows improving momentum. Specific stock recommendations are provided for traders.