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Quote On Morning Market 14 March 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Markets have a tendency to overreact- both on the upside and downside. What we are witnessing now is an overreaction on the downside. Concerns of a financial contagion are overdone. A positive fallout of the SVB crisis is that the Fed will go slow on rate hikes. The most likely rate action from March 22 meet is a 25 bp hike or, perhaps, no hike. An important factor that investors should keep in mind is that the Indian banking system is strong and least vulnerable to a financial crisis even though sentimental impact is possible. Investors can wait for this storm to pass. But long-term investors with higher risk appetite can certainly slowly accumulate high quality stocks, particularly in the domestic economy facing segments like banking and capital goods.

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