IGI Logo

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

Drawing positive momentum from the previous week, the domestic market started off the week on a positive note, while negative global cues disturb the mood by the end of this week. Economic activities showed signs of strength, with the manufacturing PMI expanding to 57.8, indicating sustained demand and boosting confidence in the manufacturing sector's prospects. Additionally, provisional business numbers from banks, automakers, and real estate companies bolstered investor confidence, while FIIs provided additional support to the domestic market. Heightened trade tensions between the US and China, along with uncertainties stemming from the hawkish FOMC minutes, tested the risk appetite of global investors. The sharp increase in US private payroll data led to expectations of a prolonged high-interest rate environment, resulting in a spike in US bond yields and increased volatility in global equities. Market participants are eagerly awaiting key data points such as domestic and US inflation numbers for further insights into the sustainability of the market trend. Given the elevated market valuation, the profit booking is visible at the upper band of the rally.

Above views are of the author and not of the website kindly read disclaimer