June 14, 2022 / 10:10 AM IST
V Okay Vijayakumar, Chief Funding Strategist at Geojit Monetary Providers.
The sharp lower in US markets on Monday has pushed the S&P 500 into bear market territory. With the Nasdaq already in bear market territory, markets are prone to stay weak with occasional reduction bounces.
The sharp decline within the US markets was triggered by a WSJ article indicating a 75 bp hike by the Fed in its Wednesday assembly. Now, the bulk view is that the Fed should hike aggressively with a few 75 bp charge hikes to include inflation and set up its credibility.
CPI inflation in India in Might coming at 7.04%, down from 7.8% in April, is nice information that inflation will not be getting uncontrolled. So, RBI needn’t hike aggressively just like the Fed.
Financials, significantly main non-public sector banks, have the potential to present market beating returns for traders with a one-year perspective. Defenses like main FMCGs are secure bets.