Rate cut impacts many asset classes In equity, it is very visible. Now with earnings coming in, and commodity softening, it is also good for Indian equities. FIIs are scouting for emerging markets during high return rate cuts. We are going to be in an upbeat mode and understanding October seasonality also, it is generally on a high note only.
Vinit Bolinjkar: Yes, that is where the two big bang IPOs are scheduled. We also have our credit policy on October 6th to 8th. So, markets will remain buoyant. The broad market has been narrowing. We have seen the bulk of the activity being relegated to largecaps, banking, and IT stocks and I expect this trend to continue to play out with metals also contributing to this rally.
Because the metal space was the one that was really shining bright, so do you see it retaining this particular sparkle that we have seen in the week gone by, do you see it just keeping its sheen then?
Vinit Bolinjkar: Metals over the longer term will continue to move up, but there could be a slight bit of profit taking in the coming weeks since we have seen some seven-eight days of very heady movement in the markets. So, next week could span out to be a little bit of a consolidation. But I expect the steel stocks to do rather well. Tata Steel and SAIL are expected to do very well.
The auto space was in top gear. Power stocks also stayed really charged and were powering through. What do you make of this firstly and secondly, what do you pencil in next when it comes to the next week?
Vinit Bolinjkar: Maruti has guided for setting up 25,000 charging points before their car is launched. It is a very good strategy that they have adopted and Maruti is one stock which will be powering in FY25. I believe that would be my focus trade. Apart from that, if we look at power stocks, we like Adani Green, given that IPOs of NTPC Green are also scheduled to hit the markets. So, while there has been a slight profit-taking, the markets next week should move ahead with Adani Green.
