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Quote on Morning market 10 October 2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The paradoxical construct of good economic news turning out to be bad news for markets played out again last Friday in the US. The surprisingly low US unemployment rate at 3.5 percent implies that the Fed will have to continue raising interest rates longer than the markets had discounted. As Warren Buffet famously said, “interest rates act like gravity on markets.” For the near-term equity markets will be in uncertain territory with a downward bias. The big question is whether India would continue to outperform.

Q2 results starting today with TCS would influence IT stock movements. The management commentary would be more important than the results.

Since the dollar index and US bond yields are rising again, FIIs may continue to sell. This will provide opportunities for long-term investors to buy high quality stocks, particularly in financials."

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