Morning Market Quote : Early indications from the Narendra Modi - Donald Trump talks are positive from the market perspective Says Dr. V K Vijayakumar, Geojit Financial Services
Below the Quote on Morning Market Views from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
"Early indications from the Modi-Trump talks are positive from the market perspective. The threatened reciprocal tariffs have been delayed leaving room for further negotiations and a possible deal. India’s willingness to buy more oil & gas from the US can help reduce the trade deficit with the US. Even though Trump is unlikely to back down on reciprocal tariffs, India is treated as a friendly country and the bonhomie between the two leaders augurs well for India.
The oversold market can bounce back in the near-term but a sustained rally is unlikely since the FIIs continue to be on sell mode. Only a decline in dollar and US bond yields will turn the FIIs into buyers. So watch out for this space.
The ongoing divergence in the market’s preference in favour of largecaps over mid and small caps will continue. Some of the top holdings in small cap mutual funds now are mega caps."
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