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Below are Views On Close on the heels of the overnight losses in the US equity markets By Dr. Joseph Thomas, Head of Research, Emkay Wealth Management

“Close on the heels of the overnight losses in the US equity markets, the local market too opened lower and traded in the red during the first half of the trading session, but swiftly  bounced back to a gain almost 1.25 % . All the major indexes including banking, IT , Pharma &Healthcare, Tech etc. provided the necessary push to the indexes to surge higher.  This is in contrast to the fall seen today  in the Eastern markets and early Europe. There could be some amount of short covering given the selling seen earlier this week, and also a marked relief with some improvements due to a fall in the oil prices. But the issues surrounding higher US yields will continue to be material to the markets in the coming weeks. The Fed sees growth and the Fed sees inflation, and so the yields will go higher - this is something that is heard on the street again and again. This may have consequences for equities, though in a limited way, in the coming days. The trajectory of the US markets will be closely followed o some extent , though the domestic economy is likely to post an  impressive growth, close to 10 %,  in in FY 22.”

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