IGI Logo

Quote On Morning Market 20 February 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

There is a growing concern that the equity markets are ignoring the risk of high inflation which is declining only very slowly. Comments from some Fed officials that they might have to remain hawkish for an extended period of time and might support even a 50 bp rate hike in the March Fed meet are negative for equity markets. US bond yields and the dollar index have inched up from their recent lows in response to this concern. In India, it appears that the period of sustained selling by FIIs is over and they have started buying on some days. The negative sentimental impact of the Adani issue appears to be behind us. The likely hawkish stance from the Fed will restrain the rally in the US market and this will also keep the Indian market in a range, attracting selling at higher levels and buying at lower levels. Valuations of the leading banking names, large-cap IT and capital goods companies are reasonable now and may be accumulated on declines.

Above views are of the author and not of the website kindly read disclaimer