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Quote on Morning Market 03 November 2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The Fed commentary after the expected 75bp rate hike, particularly Jay Powell’s remark that the terminal rate is likely to be higher than thought earlier, disappointed markets which resulted in a sell off in US markets. But it is important to note that when asked about moderating rate hikes he said, “ that time is coming and it may come as soon as the next meeting or the one after that.” So, it is possible that the markets can again bounce back since the economy continues to be strong and unemployment is at record lows indicating that a recession is not imminent. India’s outperformance is likely to continue since leading indicators like credit growth, capital expenditure and auto sales point to robust economic recovery.
FPI buying of Rs 12610 crores during the last 5 trading sessions can provide support to the market at lower levels. Large-cap banks, capital goods and the premium auto segment can be bought on declines.

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