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Below is the Weekly Market Outlook By Vinod Nair, Head of Research at Geojit Financial Services

"Domestic equities were moving in tandem with developments in the Russia-Ukrain crisis and global inflationary pressure. Domestic indices started the week plunging deep in the red as increased te nsion between Russia and Ukraine sent oil prices rising and forced investors to dump risky assets. However, a ray of hope that the tension is de-escalating prompted a sharp recovery in domestic equities. India’s CPI inflation for January rose to 6.01% breaching RBI’s tolerance level due to high food inflation and low base effect and the same will be a point of concern for the domestic market in the near term. In yet another blow to global inflationary pressure, UK’s inflation jumped to 5.5% in January recording a 30 year high, putting pressure on the Bank of England for a further rate hike sooner than anticipated. Indices ended the week keeping volatility high as the US market witnessed sell-off following the release of the FOMC meeting minutes where the Fed officials outlined plans for an interest rate hike and said that the unwind of the bond portfolio could be aggressive.

As current global cues are forcing global equities to remain unstable, the domestic market is also expected to continue its volatile trend in the coming days. In such a volatile market a prudent approach is to have a balanced portfolio with a mix of equity, debt, gold, and cash"

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