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Quote On Morning Market 10 July 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

After the recent surge that took the benchmark indices to new  highs, the market is likely to move to a consolidation mode. The latest US non-farm  jobs data (2.09 lakh jobs created in June) shows that the labour market is cooling off. But since core inflation remains sticky around 5% the Fed is likely to raise rates by 25bp on 26th July. Anticipating this,  bond yields have moved up with the 10-year yield above 4%. This macro construct will restrain the ongoing rally in the mother market,and this will have its impact on the Indian market,too. Moreover, DIIs have emerged as major sellers during the last 2 trading sessions with cumulative selling of Rs 5316 crores. At lower levels FIIs may again buy aggressively since India continues to be a consensus favourite destination for FIIs. In brief, the market is likely to move into a consolidation phase. Financials will support the market during dips since the Q1 results will be good and valuations are reasonable.

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