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Quote On Morning Market 22 May 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

A major trend in FPI investment is the steady increase in inflows to Japan, India, South Korea and Indonesia and the declining enthusiasm for China. The Chinese market has been steadily declining in recent days in response to poor corporate results. The reverse is happening in India where FPIs have invested Rs 26591 crores in May till 23rd.
Nifty is poised for a rally, but a breakout will happen only when a resolution to the US debt ceiling impasse is visible.
Adani stocks have rallied in response to the Supreme Court expert panel’s remark that “ at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation.”
The high integrity of the members of the panel must have given confidence to investors to buy the beaten down stocks. Some short covering also would have contributed to the rally. However, from the valuation perspective, Adani stocks are not undervalued.

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