Morning market view by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

There are tailwinds and headwinds for the market now. A strong tailwind is the sustained FII buying which has touched a cumulative amount of Rs 29513 crores during the last 7 days. This is a total reversal of the momentum trade to US stocks when the dollar was strengthening.

Since FII buying is likely to sustain bears will restrain from shorting the market. Another tailwind is US Treasury Secretary Scot Bessent’s remark that “ India is expected to strike the first bilateral trade deal with the US.”

US also is keen to strike as many deals as possible since China’s response to US initiatives has been indifferent. The resilience of the India economy can continue to support the market. The potential headwind looming large on the horizon is the uncertainty regarding India’s response to the terror attack and its consequences