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Quote On Morning Market 28 February 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Sustained FII selling (Rs 5488 crores in the last 4 days) will act as a drag on the market in the near-term. Weak participation by retail/HNIs have emboldened FIIs to press sales on every mild rally. This trend might continue. But a significant feature of the market trend is the strength being exhibited by the banking sector. Smart money is chasing fundamentally strong banking names. Investors should appreciate the fact that the selling in banking is overdone and some bluechips are available at attractive valuations. For instance, Axis Bank is now trading at 1.5 times forward PB. IT valuations are also turning attractive for long-term investors. Attractive valuations can trigger buying in beaten down segments. The PCR and derivatives activity indicate an oversold market.

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