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

Today’s Fed decision will be crucial in determining the direction of the market. The most likely outcome will be a 25bp hike in rates along with assurances of financial stability. Since inflation continues to be high and unemployment is at record lows the Fed has to keep its vigil on price stability. If the Fed decision is a pause, there will be a strong rally in markets. An important market trend is the steady decline in the volatility index CBOE VIX in recent days from 26 to around 21 now. This means there is no fear in the market unlike during the Global Financial Crisis of 2008.
Investors should remain cautious and wait for stability to emerge. Safety is in large caps. Long-term investors can nibble at high quality large caps.

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