IGI Logo

Quote On Morning Market 12 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Even though the momentum is with the bulls the market is likely to remain subdued till there is clarity on two important issues. The US debt ceiling impasse is a short-term threat to the market even though the market believes that the issue will be sorted out just before the deadline. The Karnataka poll outcome can impact the market if the results surprise with either a big win for the Congress or the BJP contrary to the broad exit poll results. A decisive trend in the market will emerge only after clarity on these two issues.

The outperformance of the broader market is significant and this is supported by good Q4 results. Latest mutual fund data shows that an increasing amount of mutual fund inflows is moving towards small caps. This can support the rally in the broader market.

Above views are of the author and not of the website kindly read disclaimer