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Quote On Morning Market 02 March 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The major concern for global equity markets continues to be the rising bond yields in the US, which will act as a drag for FII inflows into emerging markets like India. Yesterday the US 10-year bond yield touched 4%. FIIs cannot be expected to turn buyers in this scenario. Investors should make a distinction between FII selling on rising interest rates in US and DII buying on improving prospects for the domestic economy. Domestic economy-facing stocks like banks, capital goods, cement, select autos and FMCG will continue to do well. Banking stocks are resilient and can be expected to remain strong even amidst FII selling.

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