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

"The market will be moving in the midst of domestic tailwinds and global headwinds today. The domestic macros are highly positive. The better-than-expected decline in CPI inflation to 3.75% in February has brought down inflation below the RBI’s inflation target of 4%. Along with this, the surge in the IIP in January to an 8-month high of 5.01% brings in a desirable growth-inflation balance. This provides the perfect macro backdrop for a rate cut by the MPC in April.

Under normal circumstances this macro data would have boosted the stock market where valuations are fair and even attractive in pockets. But unfortunately the global scenario is highly unfavourable with the trade war triggered by Trump getting worse. Trump’s 25% tariff on steel imports to the US has been swiftly retaliated by the EU with tariffs on $28 billion of imports from the US and Canada has imposed tariffs on $20 billion US exports to Canada. China will follow suit. This global backdrop will constrain a rally in the Indian market. Investors should focus on domestic consumption themes."

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