IANS | 25 Apr, 2024
While foreign institutional investors (FIIs) sold heavily in the
past few days, the selling has been countered by domestic funds.
During the last seven days, FIIs sold equity worth a massive Rs
25,853 crores but the domestic institutional investors (DII) buying
overwhelmed this FII selling and the market continued its upward
momentum, says V. K. Vijayakumar, Chief Investment Strategist, Geojit
Financial Services.
The overarching trend of this market is its
bullishness despite negative triggers. The rising bond yields in the US
and geopolitical tensions are not impacting the market at all, he said.
He said the Q4 results of Axis Bank are better than expectations and, therefore, the market will respond to that.
“The
regulatory restrictions on Kotak Bank will weigh on the stock. Since
the VIX is at low levels, the market will not witness any serious
corrections. In the near term, consolidation is likely," he added.
BSE Sensex is trading at 73,811 points down by 40 points. Kotak Mahindra Bank is down 9.9 per cent.
Motilal
Oswal Financial Services said Kotak Mahindra Bank has been reporting
stronger growth in retail products, aided by a higher mix of digital
sourcing and a thrust on unsecured products. The bank has earlier guided
to further increase the mix of unsecured products as the underlying
asset quality remains under control, while high cross-selling and
reduced costs of digital sourcing are aiding overall profitability.
“The
RBI ban will thus disturb the growth trajectory of retail products and
adversely impact overall margins and profitability,” the brokerage said.