Expert view, July 6 -- Dharmesh Kakkad, Senior Fund Manager at ICICI Prudential AMC, says the impact of El Niño on monsoon remains an important variable to watch, as any meaningful disruption to rainfall could have implications for rural demand and certain parts of the economy. Among the global factors, policy moves of the US Federal Reserve will influence capital flows, currency movements, and the overall market sentiment. Edited excerpts:

Some macroeconomic indicators have turned more supportive. However, there are still several domestic and global factors that warrant close monitoring. Continuous FII selling remains a key concern.

Although domestic flows have remained resilient and continue to provide support to the market, the ...