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"Despite a slump in Q2 growth rate, the market maintained a positive bias throughout the week as the core sector output in October and stability in service PMI data show signs of recovery. Further, a positive turnaround from FIIs to India in expectation of a dovish monetary policy by RBI supported the sentiment. RBI turns more realistic with a revision on its growth forecast for FY25. While boosting liquidity in the financial system by reducing CRR by 50 bps, RBI reiterates that maintaining macroeconomic stability remains crucial.

Investors are now accumulating the momentum stocks as the expected pick-up in the government capex may provide some impetus to infra, capital goods, realty, cement, and metal industries in H2FY25. PSU banks outperformed amid a liquidity boost by RBI. The outlook for the February monetary policy meeting also turned positive as inflation is likely to moderate in Q4, supported by seasonal corrections in vegetable prices, kharif harvest arrivals, and anticipated rabi output. For the week ahead, market direction will be influenced by the release of US payroll and US CPI inflation data, which will give some insights into the Fed's December meeting."

 

 

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