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Quote On Morning Market 27 March 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The element of uncertainty in global markets continues. The sharp cut of 4.6% in the European bank index last Friday, despite the assertion by authorities that the European banking system is resilient, is a reflection of the fear in the market. Actions by US authorities have brought near-term stability in the US banking system; but we don’t know what lies ahead. Investors should remain cautious till stability returns. The changes proposed in the taxation of debt funds will make them less attractive for investments made after 1st April 2023. So, the next few days before April 1st will give opportunities for investors to invest in these funds, including international funds, for the long-term. Interest rates in India are likely to decline towards the end 2023 after, perhaps, one more 25 bp rate hike in the next MPC meet. Declining interest rate scenario is favourable for debt funds.

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