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Quote On Morning Market 03 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Currently there are two significant macroeconomic trends that might impact equity markets. One, the US economy is slowing down and leading indicators like new job generation suggest further deceleration in the US economy and a possible recession by end 2023. Two, in contrast to this trend in the US, is the resilience of the Indian economy with leading indicators like GST collections, FDI, credit demand and corporate results reflecting optimism. This apparent economic outperformance by India and the rupee appreciation have triggered a reversal in FII stance nudging them to buy in India. During the last four trading days, FIIs have bought equity for Rs 8212  crores. This can impart resilience to the Indian market even in the context of weakness in the mother market US and global markets. The fresh bout of weakness in the US markets has been triggered by the sharp correction of 5% in the US Regional Bank Index. Weakness in the market caused by global concerns can be used by investors to buy high quality stocks.

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