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Weekly Market Outlook By Vinod Nair, Head of Research at Geojit Financial Services Ltd

"Positive triggers like easing inflation numbers and brighter Q3 results projected by the second set of IT majors buoyed the domestic market to close the week on a positive note. India’s retail inflation eased to 5.7% in December, remaining within the RBI’s tolerance band of 2-6%, owing to reduced food prices. Similarly, the US inflation numbers cooled off to 6.5%, fuelling bets that the Fed will pursue a less aggressive tightening policy. US wage growth slowing, service activity contracting, and December payrolls rising higher than anticipated increased the possibility of a softer landing for the US economy.  However, cautious growth forecasts by IT majors squeezed out optimism. Relentless selling by FII over the week as a result of premium valuations in the domestic market also weighed on the overall market momentum. Going ahead, with IT earnings out of the way, investors will now focus their attention on the earnings of financials, which are expected to be released over the weekend."

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