Vidya Sreedhar

The strong rally in smallcap stocks drove the BSE Smallcap index 6% higher last week. Meanwhile, benchmark S&P BSE Sensex gave just 0.8% returns.

After a positive start, the market outlook remains optimistic for the upcoming holiday shortened week. Stock markets will be closed on Thursday for Eid-Ul-Fitr, with investors keeping an eye on global signals. 'The upcoming week kicks off the earnings season, with attention on IT giants first,' says Ajit Mishra, SVP - technical research at Religare Broking.

Bain Capital is offering Axis Bank shares for Rs 1,071-Rs 1,076.05 a share, and it seeks to raise $431 million through the block trade.

Domestic equity bulls drove a 1000-point rally in S&P BSE Sensex, surpassing 75,000. Nifty50 hit a new high. Market sentiment buoyed by various factors. Future direction may hinge on earnings performance.

Motilal Oswal Asset Management maintains equity investments with 1-3% cash positions. Chaturvedi foresees strong FY25 earnings and investment potential in new-age technology, healthcare, manufacturing, and NBFCs, amidst favorable market valuations and exit load adjustments. He also says that Motilal believes that the midcap and smallcap stocks might have higher growth in the future.

Q4 earnings preview indicates private banks may outperform public sector lenders due to tight liquidity. JM Financial expects 5% earnings growth, while analysts focus on NII growth, asset quality improvement, and stock outlook based on deposit performance.

In FY24, FPIs invested heavily in capital goods, consumer services, and automobiles in India. Sectors like telecom, healthcare, and financial services also saw significant inflows, while metal & mining, oil & gas, media, and chemicals faced heavy selling.

TCS anticipates sequential revenue growth in Q4 earnings amidst deal wins and focus on FY25 outlook. BFSI recovery, Europe market, and mega deals play crucial roles in driving growth.

In the first quarter of FY24, TCS saw a 3% sequential drop in consolidated net profit, while revenue rose a mere 0.4%, making it the slowest growth in 12 quarters for the country's largest software exporter.

Mirae Asset Investment Managers are bullish on India's economy, emphasizing growth prospects. Ankit Jain sees opportunities in midcap companies, consumer, and financial services sectors. Positive outlook despite stretched valuations, with focus on earnings growth and investment opportunities in various sectors. Jain says: "The 1-year forward P/E ratio for Nifty stands at 22.5x, while for the Midcap 100, it is 24.5x, representing a premium of 12-15% over their respective 10-year averages."