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Quote On Morning Market 07 February 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

There are huge uncertainties in the global equity markets now. The biggest uncertainty pertains to how the U S economy is likely to perform this year. The surprise 517000 job number in the US in January indicates a tight labour market and a strong economy. This means the Fed might continue to raise interest rates, perhaps twice more by 25 bp, this year. This has pushed up the bond yields with the 10-year at 3.62% now. This is negative for capital flows to emerging markets. Therefore, FIIs might continue to sell in India. In 2023, so far, FIIs were buyers only on 3 days and sold on all other trading days. Sustained FII selling and the Adani crisis have temporarily impacted sentiments. Investors may wait and watch for the dust to settle.

Meanwhile high quality stocks, particularly those which have declared good results, may be slowly accumulated.

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