homevideos Newsmarket NewsPrefer stocks in the domestic growth space rather than IT: IIFL Institutional Equities
Prefer stocks in the domestic growth space rather than IT: IIFL Institutional Equities
Inflation eased in the United States and that sparked a rally across global stock markets. Dalal Street hit its highest level in 13 months. Sensex gained over 1,100 points and the Nifty rallied over 300 points. Bank stocks led the charge with the Nifty bank index ending at a record highs. However midcaps underperformed with the index ending barely in the green.
Inflation eased in the United States and that sparked a rally across global stock markets. Dalal Street hit its highest level in 13 months. Sensex gained over 1,100 points and the Nifty rallied over 300 points.
Bank stocks led the charge with the Nifty bank index ending at a record highs. However midcaps underperformed with the index ending barely in the green.
GV Giri, Head of Research at IIFL Institutional Equities told CNBC-TV18 that he would prefer stocks in domestic growth space rather than IT.
Giri said, “When the Fed raises rates, the final intent is to cool inflation down. Inflation will come down when consumption comes down. In the US the consumption spending is linked to the stocks markets. So if the US markets rally like they did yesterday, there is all likelihood that spending will stay reasonably strong.”
“So the Fed will have to raise rates, the markets have to break and then probably inflation will fall on a durable basis. So it is impossible to say that we won’t see a large speed breaker confront the US economy markets and the IT stocks which are linked to the US economy. So I would prefer stocks in the domestic growth space rather than IT.”
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