IGI Logo

Below the Quote onweekly market outlook from Vinod Nair, Head of Research at Geojit Financial Services

"The domestic market has sustained its recovery momentum from recent lows, bolstered primarily by positive signals from its global counterparts and better-than-anticipated earnings from index heavyweights. Throughout this week, mid- and small-cap stocks outperformed the broader index, despite concerns over high valuations. The broader market remained positive, driven by persistent buying in heavyweight sectoral stocks. Furthermore, a moderation in India's CPI and lower-than-expected inflation figures from the US Fed have stimulated investor confidence. Investors are expressing optimism regarding potential interest rate cuts in 2024, supported by favourable US consumer inflation data and improved jobless claims figures, which have also contributed to a surge in gold prices and strengthened the stock market rally. However, uncertainties persist regarding the timing of US Fed rate adjustments, with market participants eagerly awaiting clarity from an upcoming Fed chair speech. The release of PMI data for May from both the US and India next week will be closely monitored for further market insights. Amidst ongoing uncertainties surrounding election results and quarterly earnings, we anticipate continued volatility in the near term."

Above views are of the author and not of the website kindly read disclaimer