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 Weekly market outlook By Vinod Nair, Head of Research at Geojit Financial Services 

"After touching a record high, the domestic market experienced significant volatility due to the RBI meeting, global markets tumbled due to fear of an economic slowdown and worries over a Fed rate hike. The RBI raised policy rates by 35 basis points, as expected, while remaining cautious and signalling a further rate hike in the upcoming meeting. The policy stance was maintained as "withdrawal of accommodation" to bring inflation within the target range while supporting growth. The GDP forecast for FY23 was brought down from 7.0% to 6.8% considering the spill over effect of the global economic slowdown. Crude oil prices dropped. However, while easing COVID curbs in China benefited the demand outlook, fresh sanctions on Russian oil further added volatility to global oil markets. The IT sector witnessed the highest profit booking after warning of a potential slowdown in business due to global recession fears. The market is currently trading at premium valuations; slowing earnings growth will impact market sentiment.

The volatility in the market is expected to remain as we await the domestic and US inflation numbers, and the Fed's interest rate decision next week. The FOMC is projected to raise interest rates by half a percentage in its final meeting of the year, which will take place on 13–14 December 2022."

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