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Quote on Morning market 19 July  2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"FPI selling, which has been a major drag on the Market since October 21, is showing a marginally different trend. Even though FPIs continue to be net sellers, they bought  on 4 days this month. This means some FPIs are seeing value in some segments. The sharp corrections in IT stocks have made their valuations attractive. High quality financials, whose values were depressed by sustained FPI selling, are bouncing back since their fundamentals are improving.  It is important to note that CPI inflation in India, though high, is trending down: from 7.79% in April to 7.04% in May to 7.01% in June. This is in sharp contrast to the US and Europe where inflation has been steadily rising. With moderation in commodity prices, this trend can sustain.  Commodity price moderation is imparting resilience to commodity users like autos, FMCG and consumer durables. Increasing capex is assisting the capital goods segment. These are important indicators for investors. The near-term is likely to witness  stock specific action in response to the Q1 results."

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