"The 32% decline in India VIX during the last 5 days indicates that the days of heightened volatility are over and the market has entered a consolidation phase. From now on the focus will be on fundamentals and news flows.There is a recent trend of investors/ speculators chasing momentum stocks with low floating stock and excessive valuations. This is a risky trade which investors should avoid. The focus of investors should be on fairly valued quality growth stocks. Here, financials come on top. This segment has the potential to give decent returns in the medium to long term. IT stocks also have valuation comfort.Tonight’s US inflation numbers and the Fed policy outcome will influence the direction of the global equity market."