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

"The market concluded the week with a pessimistic note as a sell-on-rally sentiment prevails in the market due to a strong US dollar, high valuation, and investors shift towards a multi-asset strategy. The auto sector outperformed other indices, driven by robust December sales that defied the usual subdued demand. Mid and small caps exhibited a tepid recovery, while large caps lagged the former. Persistent concerns over FII outflows, a depreciating INR, along with signs of improving core sector print and reduced expectations for rate cuts in 2025, contributed to the mixed investor sentiments. Conversely, DIIs maintained their optimistic stance.
 
Uncertainty surrounding Trump's economic policies and high valuations may impact the stock market in the short term, particularly in emerging markets. Looking ahead, significant market attention is expected for the upcoming Q3 results, with an anticipated improvement on a QoQ basis. Further, the investors are likely to align their portfolios based on pre-budget expectations. The key data points such as the FOMC minutes, US non-farm payroll and unemployment rate will influence market sentiment."

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