Quote on Weekly market outlook by Vinod Nair, Geojit Financial Services
Below is quote on Weekly market outlook by Vinod Nair, Head of Research at Geojit Financial Services
The week witnessed a volatile start as global markets were not in favour of bulls. Measures taken by BSE to curb excessive price movement in smaller stocks also nudged selling pressure in small and mid-cap stocks. However, a late clarification from BSE on limiting its restrictions to penny stocks gave comfort to the broader markets. Support from large caps, especially banks and IT stocks helped the market to end the week at record high levels. Investor sentiments were also boosted as retail inflation eased to 5.59% in July from 6.26% in June owing to softening food prices. Industrial Production rose by 13.6% YoY in June on account of good performance by the manufacturing, mining and power sectors. As parliament passes a bill for the privatisation of state-run general insurance companies, PSU banks witnessed buying on privatisation hopes. On the global front, the US consumer price inflation stood at 5.4% YoY in July, unchanged from June’s data, taking some heat out of concerns over early tapering by the Fed. UK GDP grew by 4.8% QoQ in Q2 as activity and demand rebounded with the easing of covid restrictions.
With positive economic data pointing towards economic recovery, the market is expected to remain bullish in the long term while the possibility of a short correction in the near term cannot be ruled out. On the backdrop of eased retail inflation, the wholesale price inflation data to be released next week is expected to cool down from June’s level of 12.07%"
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