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Quote on Morning Market  09 January 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The US economic data released on Friday is significant from the global market perspective. All data point to a strong but cooling US economy which indicates the rising possibility of a soft landing for the US economy. The ISM Services data came at 49.6 against the previous figure of 56.5. The December jobs increase was 223000, the lowest in 2 years. The hourly wage increase slowed to 4.6% against the recent peak of 5.6%. All these point to cooling inflation and the possibility of the Fed going less hawkish in 2023. The market has already started discounting this with the dollar index declining below 104 and the US 10-year bond yield declining by 12bp. All signals are bullish.

In India the major drag has been the sustained FII selling. This is the data to watch. If this too turns, Nifty can break out on the upside.

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