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Below is on Weekly Market Outlook 19 May 2023 By Vinod Nair, Head of Research at Geojit Financial Services

The domestic market's rally, supported by FIIs & domestic investor inflows, faced headwinds this week from weak cues in global markets. The moderation in domestic inflation reaffirmed the central bank's decision to maintain a pause on rate hikes. India's industrial production growth slowed from 5.6% in February to 1.1% in March, mainly due to weaker performance in the power and manufacturing sectors. Nifty50 stocks that have reported results so far witnessed earnings growth of 9.7%, falling short of the estimated 10.6%, while the Nifty 500's earnings improved by 11.7% compared to the estimated 8.9%, indicating the outperformance of mid- and small-caps. The US market grappled with concerns of a potential recession and uncertainties surrounding debt ceiling talks. However, positive developments in both areas later boosted the US markets. Despite market fluctuations, FIIs continued to provide support to the domestic market. The lower levels of India's VIX reflect market stability, instilling investor confidence and promoting long-term investments.

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