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Quote On Morning Market 23 June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

After the Sensex hitting record highs, the market momentum has slowed down. The mood in the markets now is not so bullish, globally. The big wall of worry continues to the rising interest rates. After the ECB’s and Swiss National Bank’s 25 bp rate hike, the Bank of England surprised yesterday with a 50bp rate hike. The message from the leading central banks, reiterated by the Fed in its recent Congressional testimony, is that they will not let down on containing inflation and there is a long way to go before the inflation target of 2% is reached. Therefore, markets now are slowly discounting further rate hikes by the Fed, perhaps two more in this rate hiking cycle. This hawkish rate scenario is not conducive for sustaining the rally beyond record levels.
Investors should remain cautious and focus on domestic cyclicals like autos, realty and capital goods to buy on dips.