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Below the Morning Market Views from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters. In the near-term the market is likely to get a mild boost from a possible 25 bp rate cut by the MPC tomorrow. Even though steadily depreciating INR doesn’t provide a favourable macro backdrop for a rate cut, the MPC is likely to go for a 25 bp cut tomorrow to keep the optimistic momentum provided by the Budget going.

The macro trend in the US is turning favourable for EMs like India. The dollar index slipping to 107.56 and the 10-year yield declining to 4.4% are positives. FIIs are unlikely to press selling the way they did in January. Financials will be in focus today on rate cut 
expectations."

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