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"Fed chief Powel renewed his hawkish statement yesterday that the central bank is determined to control inflation and that "soft landing is possible, but extremely challenging". From the market perspective , what is interesting is that the US markets largely ignored this and ended almost flat. This may be an early indication that the markets are bottoming out. The decline in FPI selling to Rs 851 cr yesterday from the June average of around Rs 2700 cr also can be interpreted as early signs of selling exhaustion. Data will have to be watched to see whether this trend sustains.

In the near-term market movement will be increasingly influenced by the FY23 Q1 results expected from the second week of July onwards. Results of banking, IT and autos (PVs and CVs particularly) are likely to be good and those of metals, cement and some FMCG may disappoint."

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