Investors are closely monitoring the US inflation data set to release on Tuesday night, along with the Federal Reserve's communication on Wednesday, according to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Notably, the market is witnessing significant activity in reasonably priced sectors such as PSU banks and select private banks. The market's recent surge to record levels is attributed to positive factors, including a robust Q3 GDP growth rate of 7.6%, a decrease in CPI inflation to 4.87%, a rise in Manufacturing PMI to 56, Brent crude sliding to $76, and Foreign Portfolio Investors (FPIs) turning buyers amid a correction in the US 10-year bond yield to 4.23%. Additionally, the anticipation of political stability post the 2024 general elections adds to the positive sentiment. As these favorable developments are largely factored into current prices, the market is expected to await crucial incoming data before making further moves. On Tuesday, the BSE Sensex is trading down 32 points at 69,896, with L&T and Maruti each experiencing a 1% decline.
(With Agency Inputs)
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