Market View | Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Nifty has been struggling to break the upper end of 18300-18600 range, but now the market construct favours a breakout.

Globally, the market backdrop is favourable with both US and European markets consolidating and slowly gaining strength. Markets believe that the June Fed decision will be a pause. In India, too, the MPC decision tomorrow is most likely to be a pause since CPI inflation has come within RBI’s tolerance limit. The 7.2% GDP growth in FY23 and upward revision in FY 24 growth rate to around 6.4% are strong positives that can impart resilience to the market.

Financials will continue to do well. Autos have made a strong comeback after 5 years and will gain further from falling commodity prices and steadily improving demand.