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Quote On Morning Market 24 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

A significant trend in the market now is India’s outperformance compared to most developed and emerging markets. Nifty is up by 2.9% during the last one month compared to negative growth in Europe, around 1% growth in S&P 500 and lacklustre performance in most emerging markets. The important factor driving India’s outperformance is the sustained FPI inflows which has touched Rs 28169 crores in May till 24th. (Source: NSDL) FPIs have been buyers in India in nineteen out of the last twenty trading sessions. This trend is likely to continue since India’s growth and earnings prospects are much superior to those of other economies. The important factor weighing down the markets in the near-term is the lack of breakthrough in the US debt ceiling impasse. Investors may utilise the current weakness in the market to buy high quality stocks since resolution to the debt ceiling impasse is almost certain and post the resolution a rally is likely.

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