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Quote On Morning Market 15 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Even though the Congress victory in the Karnataka elections was much better-than-expected, it is unlikely to have a negative impact on markets, which in the near-term is driven mainly by FPI inflows backed by improving fundamentals. Karnataka has a long track record of voting out the incumbents. FPIs are unlikely to be deterred by the election outcome.

The macro picture is mixed with declining CPI inflation (4.7% in April ) but worrisome dip in March IIP at 1.1%. But from the market perspective the news is good since the RBI can be expected to ‘extend the pause’ in the June policy meet.
The market construct favours buy on dips with focus on autos and financials. Bank Nifty is slowly moving to record highs.

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