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Below is Quote On Morning Market 13 April 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

News on the inflation front - both from the US and India - are positive for markets. The US consumer inflation number has come lower-than- expected at 0.1% MoM and 5% YoY. CPI inflation print in India declining to 5.66% is an endorsement of the MPC’s pause decision. The core inflation also has declined to 5.8% indicating that the RBI’s inflation target of 5.2% for FY24 is achievable, assisted by the base effect. So, the MPC continuing with the present rates in the next policy meeting is a clear possibility. This is positive for equity markets. The current rally is driven by sustained FII buying, which is sort of forced buying triggered by short-covering. It is important to understand the fact that the last nine days of continuous FII  buying has led to eight days of sustained rally in the market. Mediocre Q4 results and uninspiring commentary from TCS will keep the IT stocks soft. Financials will continue to be resilient. Watch out for the pharma stocks which have emerged strong in recent days.

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