Chennai, Apr 18 (IANS): The Indian equity markets are likely to trade in a range-bound manner in the near term and 2023 is going to be a year of accumulation as volatility is likely to be higher, ICICI Securities said in a report.

"Indian equity markets overall are likely to trade in a range-bound manner in the near term. From the 10 per cent fall from their peak, the bounce back was sharp with selling pressure at higher levels as well. This trend of buying at lower levels and selling pressure at higher levels is likely to continue in the near term," the report said.

The equity markets, after being under pressure in the last four months from December till March, saw a sharp recovery in the first half of April.

The Nifty 50 index was down by more than 10 per cent from its recent peak in December 2022, which led to value buying at lower levels. Initially, the mid-cap and small-cap stocks underperformed, but gained momentum later on as overall markets stabilised, the report said.

For equities, 2023 is going to be a year of accumulation as volatility is likely to be higher with correction during the course of the year. Investors should focus on regular incremental buying on every minor dips from here on, ICICI Securities said.

Global capital markets, particularly debt markets, have been extremely volatile with yields dropping after two US-based banks closed down and fears of contagion risk spreading across the financial sector, the report said.