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

"During the week, direction of the domestic market was largely driven by the trend of global peers. Global markets were surging in expectation that the Fed will scale back its aggressive rate hike in reaction to easing U.S. inflation data. However, the euphoria was dashed by better U.S. retail sales in October and aggressive remarks from Fed officials. Domestic CPI inflation has moderated to 6.8% owing to declines in food and commodity prices, however, it remained above the RBI’s tolerance level. The CPI is estimated to fall within the range from Q1 FY24. Although domestic macroeconomic indicators and FII inflows are favourable, negative vibes from global markets and premium valuation compared to peers, the domestic market traded with caution.

In the absence of major domestic triggers, the domestic market is expected to continue its focus on global trends. Considering the current market scenario, a balanced approach with a mix of equity & debt, 60:40 for an average risk-averse investor, is advised as interest yields are becoming attractive, and the economy is slowing."

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