The markets are currently in a risk-off situation, with global VIX levels spiking 20-30%. The Fed is expected to slow down its rate hike cycle, which could lead to inflation staying but elongating the cycle. Indian markets are still in a good constructive zone, with valuations still higher than averages and break-even years at 7.5%. Financials is still straight on the radar, with the largest private sector banks and a few PSU banks.