Morning Market Quote from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Below the morning view on the market from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
"The main factor influencing the market today is likely to be the better-than-expected Q3 GDP growth number which has come at an impressive 8.4 %. However, it is important to note that the GVA has come on expected lines at 6.5%. The difference between GDP growth and GVA is due to the excellent 32 % growth in net indirect taxes.
Significant internals from the GDP numbers are the 11.6 % growth in manufacturing, the 9.5% growth in construction and 10.6 % growth in capital formation.
The impressive GDP numbers provide the fundamental support to the bull market. Large caps like RIL, Bharti Airtel, L&T and ICICI Bank have the potential to lead the rally. Tepid private consumption numbers will be a drag on consumer staples stocks like HUL.
The broad trend of the market, going forward, will be the outperformance of large caps over the broader market."
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