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Quote On Morning Market 07 August 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

A significant trend from Q1 results released till now is that there is impressive growth in corporate earnings but bulk of this profit growth has come from a few companies in banking and finance, oil refining and automobiles. Going forward, banking and finance and automobiles will continue to do well but many other segments are struggling. Capital goods appear to be on strong wicket and has the potential to deliver market beating returns for many quarters more.

Cues from the mother market US are favourable; particularly the sharp 14bp dip in the US 10-year bond yield last Friday can once again favour renewed FPI buying. Latest data from the U S indicate a slight cooling of the economy but the labour market continues to be strong. Markets will be keenly watching the July CPI print for clues on the Fed decision in August.
Indian market valuation is likely to remain elevated compared to peers. In spite of this India has the potential to deliver superior returns in the long run.

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