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

This week, markets will react to a flurry of important economic data. US inflation data on 13th, FOMC rate decision on 14th, ECB rate decision on 15th and India’s IIP and May CPI data today will give an indication of the likely economic and market direction. Markets are approaching these data points with cautious optimism as reflected in bullish market conditions.

An important feature of the current market trend is the outperformance of the mid and small-cap indices which are up by 17% and 20% in the last 2months. For individual investors, chasing mid and small- caps can turn out to be a risky game. Therefore, the  best way for retail investors to play this trend is through SIPs in these categories.
Nifty has the potential to move to record highs. Autos have emerged as the best turnaround story this year. Apart from financials, capital goods, construction and telecom are on strong wicket. New age digital companies, which have staged a smart turnaround, are likely to remain resilient.

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