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Below is on Weekly Market Outlook 13 May 2023 By Vinod Nair, Head of Research at Geojit Financial Services

Over the week, the domestic market was influenced by global market trends that revolved around US inflation numbers and job data. The moderation of US inflation below 5% provided a welcome relief for investors, indicating that the Federal Reserve's efforts to raise interest rates have effectively managed inflation levels. However, weak macroeconomic data, such as elevated jobless claims and a modest increase in producer prices, raised concerns about slower economic growth, dampening market sentiment towards the latter half. Oil prices extended their decline due to demand concerns in the US and China. The consistent inflow of funds from foreign institutional investors due to falling US bond yields and the weakness of the dollar helped in controlling the downward pressure in the domestic market. India’s inflation for April, which has moderated to 4.7%, will have a positive impact on the market next week.

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