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Quote on Morning Market 19 January 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The crucial issue influencing equity markets globally is whether the US will succeed in containing inflation without falling into a recession. There is no consensus on this. When data indicate a possible recession, US markets go down and all other markets are impacted. Conversely, when data indicate the US economy dodging a recession, US markets go up triggering a rally in all other markets. This volatility will continue till there is clarity on the US recession issue. Early Q3 results indicate good performance by IT and banking. Bank Nifty is slightly weak on concerns of pressure from rising deposit costs. But the credit cycle is strong. IT numbers do not reflect recession fears. Trend indicates that the capital goods segment is strong.

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