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Quote On Morning Market 2 June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

A dominant economic trend which has implications for investment is India’s improving economic fundamentals in a challenging global environment. Apart from the better-than-expected FY23 GDP growth rate, high frequency indicators like GST collections, manufacturing PMI, auto sales in May and impressive credit growth indicate a robust and steadily improving economy. FY24 GDP growth is likely to be revised up to around 6.5 % and consequently corporate earnings for FY24 also will be revised up. This scenario, in the context of inflation (4.7% in April) coming within RBI’s tolerance limit and peaking of interest rates, augurs well for equity markets in H2 of CY2023. An important trend in the market is the outperformance of the broader market. Expect lots of stock specific action even within range-bound movement of the Nifty.

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