Market rangebound as it awaits US inflation data

The market will be keenly watching the inflation print from the US on Tuesday night and the Federal Reserve's message on Wednesday, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. An important trend in the market is the accumulation happening in the fairly-priced segments like PSU banks and some leading private banks, he said.

The fundamental factor supporting the rally which has taken the market to record highs is the series of positive news: Q3 GDP growth rate of 7.6 per cent, CPI inflation falling to 4.87 per cent, Manufacturing PMI rising to 56, Brent crude declining to $76 and FPIs turning buyers aided by correction in US 10-year bond yield to 4.23 per cent.

This positive economic news is being strengthened by expectations of political stability after the 2024 general elections. Since these positive developments are mostly in the price, the market is likely to wait for incoming crucial data before making further moves, he said. BSE Sensex is trading down 32 points at 69,896 points on Tuesday. L&T, Maruti are down 1 per cent.