A sharp spike in US bond yields is impacting capital flows to emerging markets like India, says V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
There are two dominant factors influencing equity markets now.
One, the resilient US economy is supporting global growth and global equity markets; this is a positive. Two, the sharp spike in US bond yields (the 10-year yield at 4.34 per cent is the highest since 2007) is impacting capital flows to emerging markets like India; this is a negative for Indian markets, he said.
Sustained rise in FII inflows will happen only if the US bond yields decline. Clarity on this will emerge only after trends in US inflation and the Federal Reserve’s monetary stance indicate softening.
Investors should wait for clarity on these macro trends, he added.
Meanwhile, long-term investors can accumulate high quality growth stocks. Large-cap banks are now fairly valued. The prospects for large-caps in the capital goods sector are bright, he said.
BSE Sensex is up 54 points at 65,270 points on Tuesday morning. NTPC and Bajaj Finance are up more than 1 per cent.
IBM partners Sarvam to strengthen India's sovereign AI ecosystem
IBM and homegrown AI startup Sarvam have partnered to accelerate the development and adoption of sovereign artificial intelligence (AI) technologies in India, with a focus on government agencies, public sector organisations and regulated enterprises, according to a statement on Friday.
Sensex climbs 274 pts, Nifty ends above 24,300 as auto stocks lend support
Indian equity benchmarks closed with modest gains on Thursday after a subdued trading session, as investors remained watchful of the evolving geopolitical situation in West Asia.
Markets extend losing streak to 5th day; Sensex sheds 332 points, Nifty slips below 23,800
Indian equity benchmarks extended their losing streak to a fifth consecutive session on Friday, marking their longest stretch of declines since the first week of January, as investors remained cautious amid concerns over the inflation and growth outlook in the backdrop of elevated crude oil prices.