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Quote on Morning market 18 July  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"High volatility in the market is likely to continue in the near-term with erratic action from FIIs (FIIs bought on 3 days this month and sold on other days) and sustained buying on dips by retail and DIIs.

A significant market trend is the change in leadership from IT and banking to consumption driven FMCG and autos. The 6-month Nifty IT index return is - 31.79% and the Nifty Bank Index is down 9.61% during this period. In sharp contrast to this, Nifty FMCG Index is up 9.74% and Nifty Auto Index is up by 6.17% during this period. IT is weak on fears of a possible US recession impacting tech spending by companies. Leading bank stocks are weak due to sustained FII selling, in spite of their improving fundamentals. FMCG and autos are benefiting from the recent commodity price crash. Capital goods also are doing well on improving capex prospects. Investors can consider slightly restructuring their portfolios in the light of the leadership changes in the market."

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