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Quote On Morning Market 01st June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

There are many positives going in favour of the ongoing rally. One, the US House of Representatives has passed the US debt ceiling bill indicating that the debt impasse will be resolved. Two, the FPI investment in India continues with big investments during the last 3 days pushing the total investment in May to an impressive Rs 43838 crores. Three, the Q4FY23 and full year FY23 GDP growth figures coming at 6.1% and 7.2% have impressively beaten the market expectations indicating that the FPI optimism is justified. The 4% decline in crude is another macro positive. These positives, particularly the GDP numbers, can impart resilience to the market. The only concern is the rising valuations which might nudge DIIs to sell thereby neutralising the FPI buying.

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