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Below is on Weekly Market Outlook By Vinod Nair, Head of Research at Geojit Financial Services

The domestic market had a positive start to the week, buoyed by favourable indicators such as stronger-than-expected PMI figures, sequential growth in auto sales, and robust expansion in bank credit. These factors instilled confidence in investors regarding India's growth prospects. There was also optimism surrounding the anticipation of a positive revision in the RBI’s inflation forecast during the MPC, considering the recent easing of inflation. However, market sentiment was dampened as the RBI opted for a cautious approach by refraining from a significant cut in the inflation forecast. The central bank cited concerns over geopolitical uncertainties, the potential impact of El Nino, and the rise in the minimum support price while reaffirming their commitment to bringing down inflation to near the targeted 4%. Market participants are now eagerly awaiting the release of domestic inflation data for May, which is anticipated to show a cooling down from the current level of 4.7%. Global cues will also play a significant role in shaping the market trend, with investors closely monitoring the outcomes of the FOMC meeting and the US inflation print.
 

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