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Below the Quote on Morning Market Views 05th September 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"The initial enthusiasm witnessed in the market yesterday couldn’t be sustained. The expected short-covering did not happen, bringing the prices down towards the close. Also, the market had partly discounted the GST reforms earlier. The high valuations even amidst geopolitical and tariff-related headwinds helped bears to accumulate short positions in the market. The sustained massive buying by mutual funds in equity has touched Rs 70500 crores in August. With high money muscle facilitated by the sustaining fund flows into the market mutual bund buying will support the market during declines. 
A significant feature of the present market trend is the weakness in overvalued mid and smallcaps and relative strength in the fairly valued largecaps. This is a healthy trend which can be expected to continue."

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