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

Dalal Street was jolted by a host of global developments this past week. First it was the inversion of US bond yields that reignited fears of recession in the world’s largest economy. Then came 75 basis points rate hike by the US Fed, which is behind the curve, and keen to restore its credibility.

The fact that the balance sheet tightening by the Fed has also started, expectations foreign equity outflows may intensify are not far-fetched. Already FPI outflows are nearing Rs 2 lakh crore mark, and the key driver of the Indian market so far, the retail investors, are unsure whether to sit tight, pump in more investable money or get out of the market.

ETMarkets caught up with Dhananjay Sinha, MD & Head – Strategist of JM Financial Institutional Securities, to know how these global developments will impact domestic stocks and his piece of advice for robinhood investors, who are seeing a decent correction probably for the first time in their investing career.

Listen in!

>> This week saw US bond yields inverting again, a sign of looming recession. What signals are they sending to the domestic market?

>>Wall Street entered a bear market this week. Do you see good chances of D-Street following the suit, as June quarter earnings would anyway be reflecting inflation impact fully?

>>This would probably be the first time when ‘buying on dips’ is not working for new investors. What would be your advice to them?

>>Rising bond yields make equity investments unattractive? Do you see strong retail flows continuing?

>>If you were to pick a few pockets where money can be made in a falling market, what would they be?

Thank you Mr Sinha for the insights.

That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!

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