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Below Quote on Weekly market outlook 25 August 2023 By Vinod Nair, Head of Research at Geojit Financial Services

"The domestic market experienced another week of losses as investor sentiment was influenced by the forthcoming Jackson Hole meeting outcome. Investors are eagerly awaiting insights from Fed officials to gauge the future prospects of rate hikes. Despite a slight softening due to a weak US PMI, US bond yields remained elevated. The US Manufacturing PMI, registering at 47 against an expected 49.3, sparked hopes for an extended rate hike pause. Sectors closely tied to the Western economy, like IT and pharma, experienced increased volatility, while domestically-focused mid- and small-cap stocks demonstrated resilience and gained momentum. The recent RBI MPC meeting minutes reiterated a commitment to managing inflation within the target range amidst elevated domestic inflation. Nevertheless, the expectation of an imminent rate hike remains muted due to the perceived transitory nature of current high inflation levels."

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