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Quote on Morning Market 13 January 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

There are significant near-term positives for equity markets. Globally, the decline in US inflation to 6.5% and the consequent decline in US 10-year bond yields by 10% to 3.46% are supportive of equity markets. The dollar index dipping below 103 is positive for emerging market equity. Therefore, the sustained selling by FIIs in India for the 15th trading session is likely to abate, going forward. Yesterday, FII selling ( Rs 1662 crores) was eclipsed by DII buying ( Rs 2127 crores). DIIs now have fundamental support coming from reduced CPI inflation ( 5.72% in December) and rising IIP numbers (7.1% in November). RBI can now afford to soften rate hikes.
The emerging interest rate scenario is favourable for banks and NBFCs. The impressive Q3 results from IT majors will keep the IT segment resilient.

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