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Below the Quote on Weekly Market Outlook by Vinod Nair, Head of Research at Geojit Financial Services

While the carry trade issue appears to have been eased for now, a gradual increase in interest rates by the BoJ could have some impact in the near future. The Indian market also witnessed broad-based buying across sectors, with the Realty sector seeing a relief rally due to the reinstatement of indexation benefits. Though FIIs have been net sellers in the Indian markets for the last month, strong inflows from DIIs and retail participants have absorbed the selling pressure from FIIs.

Ola Electric had a strong market debut, defying grey market expectations of a 4-5% discount. The positive performance is attributed to its healthy long-term outlook, 38% market share, benefits from the PLI scheme, and advantages of vertical integration.

As expected, RBI kept its policy rate unchanged; however, the overall tone was slightly hawkish, including an expectation of upward revision in CPI, which hints at caution. Further, domestic valuations are not cheap, while Q1 results are painting a moderation in growth. So far, 46 companies in Nifty50 index which have published their results have reported PAT growth of 6.12% YoY,  which is marginally better than 5.78% expectation, however the overall it seems moderating compared to previous quarters.

Indian inflation data is due next week; the inflation is expected to be moderate. Moving forward, the direction of the domestic market will be influenced by global markets. A lack of fresh triggers and subdued earnings will be a deterrent for higher valuation, investors are advised to shift their focus from growth stocks to value stocks."

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