sensex: ETMarkets Investors’ Guide: Dhananjay Sinha decodes impact of US bond yield inversion, rate hikes on stocks

Dalal Road was jolted by a number of world developments this previous week. First it was the inversion of US bond yields that reignited fears of recession on this planet’s largest economic system. Then got here 75 foundation factors fee hike by the US Fed, which is behind the curve, and eager to revive its credibility.

The truth that the steadiness sheet tightening by the Fed has additionally began, expectations overseas fairness outflows could intensify aren’t far-fetched. Already FPI outflows are nearing Rs 2 lakh crore mark, and the important thing driver of the Indian market thus far, the retail traders, are not sure whether or not to take a seat tight, pump in additional investable cash or get out of the market.

ETMarkets caught up with Dhananjay Sinha, MD & Head – Strategist of JM Monetary Institutional Securities, to understand how these world developments will affect home shares and his piece of recommendation for robinhood traders, who’re seeing an honest correction in all probability for the primary time of their investing profession.

Hear in!

>> This week noticed US bond yields inverting once more, an indication of looming recession. What alerts are they sending to the home market?

>>Wall Road entered a bear market this week. Do you see good probabilities of D-Road following the go well with, as June quarter earnings would anyway be reflecting inflation affect totally?

>>This might in all probability be the primary time when ‘shopping for on dips’ will not be working for brand spanking new traders. What could be your recommendation to them?

>>Rising bond yields make fairness investments unattractive? Do you see robust retail flows persevering with?

>>Should you had been to select just a few pockets the place cash will be made in a falling market, what would they be?

Thanks Mr Sinha for the insights.

That is all on this week’s particular podcast. Do hold checking this house for extra attention-grabbing content material and take day trip to comply with our market podcasts twice each day. Keep secure and Glad Weekend!