Interest rates and stock prices are inversely related. As interest rates rise, more money moves to fixed-income assets, adversely impacting stock prices. Markets start discounting earlier than the actual event, which can lead to a decline in stock prices. Alternatively, the reverse is true when interest rates start falling. Interest rates have peaked, and this has implications for investors to lock into fixed-income assets like debt funds and bank FDs. As such, equity markets are set to stage a rally in the second half of CY 2023.