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

"The New Year begins on a sombre note for the Indian equity market. The near-term trend appears weak with the macro construct dominated by weak GDP and earnings growth. The headwinds from a strong dollar ( $ index is at 108.5%) and high U.S. bond yields will impact the market through more FII selling, at least in the early days of 2025. Even though FII selling is matched by DII buying, in this tug of war, in the near-term, sentiments are on the side of FIIs since valuations continue to be elevated and growth and earnings are yet to show signs of recovery.

A trend reversal may happen if the Q3 corporate results indicate recovery in earnings. But an across the board sharp recovery appears unlikely. Positive cues can come from a growth-stimulating Budget followed by a rate cut by the MPC in February.

Investors should be cautious and watch for potentially market moving macro data."

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