Market Outlook Apr. 2024

As anticipated, March 2024 witnessed significant volatility and profit booking, with the market encountering resistance each time it attempted to break out. This trend was primarily triggered by valuation concerns highlighted by SEBI for midcaps and small caps, alongside year-end loss booking to offset tax implications. Additionally, concerns regarding inflation data in both the US and India further contributed to market unease. In the last 2 trading sessions however, we saw some bounce back due to US Fed policy stance, our central bank easing recently tightened rules for lenders’ investments in alternative investment funds (AIFs) and foreign portfolio investors buying Indian shares worth Rs. 2,170 crore on a net basis on 27th March, Wednesday, while domestic institutional investors purchased a net Rs 1,198 core worth of stocks. Read more.