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

 

Market is likely to continue in the consolidation mode for a couple of days more and then take a new directional trend starting April. The undertone of the market continues to be bullish supported by strong economic fundamentals.

A significant structural trend in the market is the sustained flows into equity mutual funds which are gathering momentum. This will ensure resilience of the market with dips getting bought.

Midcaps have again become the segment of activity, particularly by retail investors. This is because there is no institutional selling pressure in midcaps unlike in largecaps where institutions including FIIs have large holdings.

Financials are likely to lead the rally along with capital goods and automobiles in early April. Credit growth in the economy is impressive at around 20% and this will help boost banks’ profitability. Q4 results of banks will be good.