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“I am avoiding smallcap stocks and also the consumer sector until I find that the inflation in rural India is more under control. Also if rural India shows greater traction towards growth, which is very evident in the housing and infra sectors but not so evident on the consumer side.”

China stocks opened down before giving up earlier losses, with the CSI300 Index touching its lowest level since Feb. 2019.

“For the next 12 to 18 months, cement, capital goods, banks would be the areas I would look for in largecaps. I do not see largecap banks as the leader of the next bull market for sure, but will they participate and will there be a mean reversion in their returns. Of course.”

"Market pricing for rate cuts is a bit overdone in our view," said Wei Li, Global Chief Investment Strategist for BlackRock. "Rate volatility is here to stay."

On the weekly options front, the maximum Call OI is placed at 21000 and then towards 20900 strikes while the maximum Put OI is placed at 20700 and then towards 20500 strikes.

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