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Quote on Morning market 11 August  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"US inflation data at 8.5% in July will be a near-term boost to markets. Many market experts believe that the peaks of inflation and Fed hawkishness are behind us. The next Fed rate hike is, therefore, likely to be 50 bp and not 75bp. This also increases the probability of a soft landing in the US. The near-term texture of the market is likely to be bullish. But this need not sustain for two reasons. One, market valuations are high and this will attract profit booking. Two, details of the US inflation data reveals that inflation is unlikely to drift down steadily since wage growth and rents continue to rise. So, the Fed may continue to be hawkish impacting market optimism.
The decline in dollar index to  below 106 is supportive of more capital flows to emerging markets and India is the outperformer in the EM universe."

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