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Market view on behalf By Nitin Raheja, Executive Director, Head – Discretionary Equities, Julius Baer India.

The Indian markets have after their sharp correction in the early part of the year, got into a time/price correction mode over the last few months. While the index seems to reflect a bull market correction single stocks have corrected far more steeply reflecting a correction more like one seen in bear markets. The overall market depth has been extremely narrow, resulting in a phase where index investing has been a more profitable trade. 

Going ahead however we believe volatility should settle down as the momentum and quantum of rate hikes become known events. Further commodity prices have also shown signs of easing off late making us believe we are over peak inflation. The resilience of the Indian economy and absence of any fresh negatives should result in a better performance of the markets in the second half of the year.

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