New Delhi, Feb 5,2024: The global construct for equity markets continues to be good with the US doing well aided by a surprisingly strong economy, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The latest data on job creation in January has again surprised with the addition of 3,53,000 jobs.
There are no signs of the US economy tipping into a mild recession any time soon. This means that the Fed rate cuts expected this year are likely to be back-loaded.
This has pushed up the 10-year bond yield again above 4 per cent and the dollar index to 104. This might prompt some selling by FIIs. But the market momentum is good supported by strong DII and retail buying, he said.
Among the recent results Tata Motors and Interglobe Aviation stand out and these stocks have more room to go up. RIL also is exhibiting strength, he added.
BSE Sensex is at 72,158 points, up 73 points on Monday. Tata Motors is up a massive 7 per cent. Powergrid is up 3 per cent.