Analysts project market’s resilience due to strong economic growth

New Delhi, April 10 (IANS) – Chief Investment Strategist V K Vijayakumar from Geojit Financial Services predicts that despite rich valuations, the market will remain resilient due to factors like economic growth, corporate earnings, and sustained capital flows. The outperformance of large caps over mid and small caps is seen as a positive trend that may continue, with largecap banking stocks likely to lead the rally.

Vijayakumar highlighted the significance of the US CPI data to be published on Wednesday, as it will impact the Federal Reserve’s rate cut decisions. The decrease in US inflation is viewed positively, but the future trajectory of inflation will play a crucial role in influencing global stock markets. Deepak Jasani, Head of Retail Research at HDFC Securities, mentioned that Asian stocks are trading cautiously ahead of key inflation data that will shape the Fed’s next moves.

In terms of market performance, the BSE Sensex is currently trading at 74,901 points, showing an increase of 218 points. Tech Mahindra, Bharti Airtel, and Kotak Mahindra Bank are among the stocks that have gained over 1 per cent. The US stock indexes closed nearly flat on Tuesday, with investors focusing on the upcoming inflation reading and earnings reports from major banks later in the week.

Overall, the market seems to be driven by various factors such as economic indicators, corporate earnings, and global trends. The resilience of the market despite high valuations and the positive outlook on large cap stocks indicate a sense of stability. With the upcoming inflation data and earnings reports shaping investor sentiment, the market is expected to remain dynamic in the coming days.