Yield movement, Q2 results, fund flows among 8 factors to keep Dalal Street investors on tenterhooks
Tata Consultancy Services.
In the week gone by too, volatility saw benchmark indices swing between gains and losses, but eventually ended flat. The Nifty 50 settled at 19,653 points and Sensex at 65,995 points.
The risk-off sentiment in equities of late was triggered by the rising bond yields and firming dollar.
Therefore, movement in the bond yields will be closely monitored by investors in the week ahead.
Besides this, the quarterly earnings, inflation data in the US and India, crude oil price movements, and FOMC meeting minutes will be on the investors’ radar.
Global Cues
Last week, yield on US benchmark 10-year bonds surged to a 16-year high, and those in India saw their steepest rise in six months.
The expectations of higher for longer interest rates pushed yields higher, and this prompted foreign investors to pull out money from risky assets such as equities and park it in the bond market.
“As long as US dollar and bond yields show no signs of moderation, there could be foreign fund outflows from emerging economies, including India,” said Shrikant Chouhan, Head of Research (Retail) at Kotak Securities.
Sharp intra-day gyration is likely to continue due to weak global factors and foreign fund outflows from the domestic market, he said.
Q2 Earnings
The second quarter earnings season will officially kickstart on Wednesday, when IT major TCS will release its numbers. The company is also set to announce a share buyback.
Following TCS is Infosys and HCL Technologies on Thursday.
Besides the IT companies, Angel One, HDFC Asset Management, and HDFC Life Insurance are the other major ones reporting their quarterly earnings.
Fund Flows
Eventhough India remains the most favourable emerging market in the global
