IGI Logo

Below the Views On Morning market 05th November 2026 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited?

"With tailwinds for the economy getting stronger, the bullish trend in the market is set to continue. The strongest positive for the market is the sharp 10% fall in Brent crude to around $94 level. This decline is on hopes that a resolution to the US-Iran conflict is likely soon since this conflict and the consequent high crude prices contributed significantly to the Republican rout in the mid-terms. 

The decline in crude prices is happening when the Indian economy is showing great resilience and corporate earnings are showing significant improvement. This, and the hope that LTCGs tax may be abolished in the coming Budget, has completely changed the FII’s stance towards India. During the last four trading days, FIIs bought equities for Rs 20834 crores in the cash market and, importantly, the buying volume is increasing steadily. There is more short-covering to happen in large-caps and, therefore, expect further rebound in large-caps led by the banking/financial majors. At higher levels, profit booking may emerge as DIIs are showing an inclination to sell on rallies. 

After the initial reaction to the US election results weakens, there will be concerns surrounding prolonged political conflict in the US, since Trump being what he is, is likely to turn Mr Veto rather than lame duck president."

Above views are of the author and not of the website kindly read disclaimer