With the rise in inflation in recent months, the rate cut cycle is expected to start only next year
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, 29 November, 2024: Post weakness in recent months, the domestic equity markets staged some comeback during this week with most of the indices posting weekly gains. The Sensex 30 and the Nifty 50 indices gained 1% during the week. The midcap and the smallcap indices outperformed the largecap index. BSE midcap and the BSE smallcap indices gained between 2-5% in this week. On the sectoral front, majority of the indices ended the week on the positive side with BSE capital goods index gaining ~5%. On the other side, the BSE auto and the BSE IT index posted flat to negative weekly return. Auto companies will be reporting their November 2024 wholesale volume in the next week and they are expected to remain lower (over October 2024), due to festive seasonality.
With results season behind us, the focus has now completely shifted on the domestic and global macro factors. The RBI MPC will be holding its meeting in the first week of December 2024. With the rise in inflation in recent months, the rate cut cycle is expected to start only next year.
