Axis Bank suggests this investment strategy for the remainder of 2023

livemint.com:

Axis Bank sees some consolidation in the second half of FY24 (H2FY24) amid a rise in crude oil prices, higher bond yields, and resurfacing inflationary fears. The global bond markets are going through a rough patch. US yields hit a fresh 16-year high after a bond selloff amid growing concerns on hawkish policy comments and interest rates which are likely to remain elevated for a longer period of time.

This will in turn lead to a spike in bond yields and the slowdown in global economic growth, which will also keep the investors cautious, Axis Bank noted in a report. The much-awaited inclusion of Indian government bonds in the JP Morgan Index was announced in September. However, the near-term impact has been muted as markets continue to remain resilient considering external market dynamics, it added.

During the September quarter, midcaps and smallcaps outperformed their larger counterparts by a notable margin. Moreover, in the last one month, sector rotation was clearly visible in the market in which PSU banks, energy, and commodity indices delivered the highest returns while the media index was in the red. Short and medium-term strategy & outlook Axis Bank remains constructive on the short to medium end of the yield curve.