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Quote On Morning Market 28 March 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The current market signals indicate that the worst of the banking crisis is behind us. S&P 500 is now trading above the March 10 level when SVB collapsed. The stock prices of European banks also are improving indicating that there are no fears of contagion now. Doomsayers who predicted that the SVB collapse is a Lehman moment for the banking sector have been proved wrong. But investors have to be cautious since there is some element of uncertainty even after this apparent return to stability. There is a level of certainty regarding growth prospects. The global economy is slowing down; but Asia, particularly India, will outperform. India’s banking system is well regulated, strong and resilient. This period of uncertainty and volatility is the right time to build a good portfolio. High quality stocks with reasonable valuations and good earnings visibility can be accumulated now. Banking, capital goods and telecom are sectors that will post good results in the Q4 results season starting on April 13th. Valuations of IT stocks have become reasonable even though the segment will face headwinds from the US slowdown.