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

The near-term uncertainty in the global equity markets is likely to continue since there is no resolution yet on the US debt ceiling issue. A strong rally will happen only after this impasse is out of the way.

The undercurrent of the market is bullish. Bank Nifty is likely to gain more traction since the Rs 2000 note withdrawal is positive for banks. It will add to the deposits of banks and increase their CASA thereby boosting their bottom line.

An important message for investors is that interest rates have peaked, globally as well as in India, and this is positive for equity markets in the second half of CY 2023. Rate sensitives like financials, real estate/construction and autos will benefit from a probable rate cut by end 2023.
From the valuation perspective, IT stocks are good value buys now.

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