Morning Market Quote : Market is back to a phase of high volatility Says Dr. V K Vijayakumar, Geojit Financial
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Quote on Morning market 02 September 2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
"Market is back to a phase of high volatility. The recent resilience of the Indian market can be attributed largely to FIIs turning buyers. But this FII bullishness appears to be over in the near-term as evidenced by the FII sell figure of Rs 2290 cr yesterday. Also FIIs are increasing their short positions in derivatives. This is a rational response to the surging dollar index which touched a 20-year high of 109.6% yesterday. This, and the US 10-year bond yield racing to 3.26% are unfavorable for emerging market equities and therefore investors have to be cautious in the near-term.
US jobs data to be released today and the CPI numbers expected on September 13th will give an indication about the strength of the US economy and its influence on the US Fed's rate decision later this month.
The near-term outlook for the market has turned bearish amidst volatility. Investors can utilise deep cuts in the market to buy domestic cyclicals like autos which are showing strong resilience supported by healthy and improving fundamentals."
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Trend reversal in FPI investment from buying in last 3 months to selling in Sep
