Diminished hopes for Chinese development will affect commodities

According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market’s range-bound behavior is probably about to break with an upward surge.

The worldwide indications are encouraging. According to him, the major global macro backdrop for a market rebound would be provided by the US bond rates, which are falling. The 10-year yield is now 4.41 percent.

The market will probably hold off until the results of the state elections are announced. The rally will be started if the election results show that political stability will continue until the general elections in 2024. Furthermore, he said that large-cap stocks in a variety of industries, including banking, IT, autos, capital goods, telecom, real estate, and divisions connected to construction, are likely to lead any such rise.

Commodities will be impacted by dimming expectations for development in China. He said that the RBI’s move to increase the risk weightage on unsecured loans has hurt financials, especially NBFCs, and that this presents a long-term purchasing opportunity.

At 65,932 points, the BSE Sensex is up 277 points. JSW Steel has increased by almost 2%. More than 1% more reliance is being used.