V. K. Vijayakumar Forecasts Positive Market Trends

The BSE Sensex experienced a significant drop of 300 points on Friday, driven by a sell-off in heavyweight stocks. Notable companies such as Bharti Airtel, L&T, Tech Mahindra, Nestle India, Maruti, and Infosys were all trading in the red. However, Bajaj Finance stood out with a more than 4% increase after the RBI removed restrictions on some of its products. Various sectoral indices, including technology, private banks, capital goods, and real estate, were also in negative territory. IT stock Coforge saw a substantial decline of over 8% following its announcement of acquiring Cigniti Tech, an assurance company. Despite challenges in realizing synergies from the acquisition, analysts believe it could be EPS accretive due to Coforge's strong execution history.

Chief Investment Strategist V. K. Vijayakumar from Geojit Financial Services highlighted positive global and domestic cues for the market. Factors such as the decline in the dollar index, correction in the US 10-year bond yield, and Brent crude prices below $84 are expected to bolster market sentiment. The continuous buying by DIIs, supported by a steady flow of funds, is seen as a key support for the market. The recent move by the RBI to lift restrictions on Bajaj Finance's products is viewed as highly favorable, potentially triggering a surge in the stock price. Vijayakumar also noted that Bank Nifty has room for further upside, with ongoing delivery-based buying likely to persist.