IGI Logo

Quote On Morning Market 21 June 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

In tune with the International Yoga Day, the market is slowly stretching both ways, without any sharp up or down moves. However, the broad market trend is up.

It is important to understand that this is a global rally with most markets - US, Euro Zone, Japan, South Korea, Taiwan - hovering around 52-week highs. India is near new record highs. Globally markets are bullish even when global growth is sluggish. The reason for this bullish trend is that the US recession, which markets had discounted last year,  didn’t happen and there are indications that the US might avoid a recession. So, markets are correcting the wrong discounting of last year.
In India there is big action in mid and small-caps and this is likely to continue.
Even though valuations are rich, there is value in large-cap banking stocks which have corrected. Leading indicators, particularly the sustaining credit growth, augur well for high quality banking stocks.
The big wall of worry for the bulls is the dismal performance of the monsoon showing deficiency over 50 % till 15th June.

Above views are of the author and not of the website kindly read disclaimer