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Quote On Morning Market 13 June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The market rally which began in April remains strong with healthy corrections. The market construct is favourable for continuation of the rally. The global support for the rally comes from the consolidation in the US market where S&P 500 is at a 52-week high with low volatility, indicating lack of fear in the market. The domestic support to the market comes from strong economic cues. The May CPI inflation at 4.25% and IIP at 4.2% are better-than-expected. The decline in inflation is a big positive from the market perspective since it opens up possibilities of a rate cut by end 2023. The 4% drop in crude price even after the OPEC production cut is good news for India.
Taking cues from the better-than-expected economic news, DIIs have emerged big buyers during the last two days. This will impart resilience to the market.

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