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

"There are two dominant factors influencing equity markets now. One, the resilient US economy is supporting global growth and global equity markets; this is a positive. Two, the sharp spike in US bond yields (the 10-year yield at 4.34% is the highest since 2007) is impacting capital flows to emerging markets like India; this is a negative for Indian markets. Sustained rise in FII inflows will happen only if the US bond yields decline. Clarity on this will emerge only after trends in U S inflation and Fed’s monetary stance indicate softening. Investors should wait for clarity on these macro trends.
Meanwhile, long-term investors can accumulate high quality growth stocks. Large-cap banks are now fairly valued. The prospects for large-caps in the capital goods sector are bright."

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