Morning view on the market from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

 

An important characteristic of the bull market is its ability to set new successive record highs. And this market has been doing this consistently. This year alone Nifty has set 6 new record highs (intraday) and this is indicative of the strong momentum in the market. Selling by FIIs, triggered by rising bond yields in the US, is having no impact on this up trending market where DIIs (bought Rs 17850 crores in February so far) and domestic HNIs and retail investors are calling the shots.

High quality fundamentally strong largecaps like RIL, ICICI Bank and Bharti taking up the leadership in the rally is positive for the bulls. Also it is important to remember that large caps have valuation comfort in this market where segments of the broader markets have tipped into frothy valuations. Since the Bank Nifty is around 4% away from its record high, more action is likely in banking stocks.

In the near-term volatility will be high. Sharp corrections can happen at any time.