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Quote On Morning Market 21 July 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Even though Nifty is at kissing distance of the psychological 20000 mark, Infosys can turn out to be the slip between the cup and the lip. Infosys’ poor guidance of 1 to 3.5% revenue growth guidance for FY 24 will drag the stock down and, perhaps, Nifty with it since Infosys has a 5.9% weightage in the index. The lacklustre performance of HUL with a meagre  3 % volume growth in Q1 can be another drag on the market. However, the relentless FPI flows, which are overwhelming everything else now, have the potential to take the Nifty to 20000 level soon. Nifty Bank can provide support to the rally.

Investors should keep in mind the fact that at the current Nifty PE of above 20 based on FY 24 estimated earnings, there is no valuation comfort in the market. Barring US, India is the most expensive market in the world now. At high valuations, some negative trigger can lead to sharp correction. But in the near-term the party may continue.

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