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Quote On Morning Market 22 June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The Sensex hitting a new high will continue to sustain optimism in the market mood. Market has been bouncing back from the dips consistently, and this market construct has the potential to sustain the enthusiasm of the bulls. India stands out among emerging markets with the best growth-inflation balance. However, the big wall of worry is the rich valuation, which might invite institutional selling beyond a point.
A negative trigger, from the global perspective, is the Fed chief Powell’s statement in the Congressional testimony yesterday that “the process of getting inflation back to 2% has a long way to go.” This indicates further rate hikes, perhaps two more, in this rate hiking cycle. However, the bond markets didn’t react to this hawkishness.

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