Weekly Market Outlook : FIIs` ongoing interest in the market and strong earnings kept the domestic market losses in check Says Vinod Nair, Geojit Financial Services
Below is the Weekly Market Outlook By Vinod Nair, Head of Research at Geojit Financial Services
Global markets were buoyed at the onset of the week as markets across the globe were expecting central banks to dial down big interest rate hikes. Contrary to expectations, the Fed and BoE refused to tone down the rate hike narrative, shattering the global markets. Powell cautions that the desired Fed rate level is higher than previously expected, even though he indicated a rate hike of less than 75 bps in the upcoming meetings. The Bank of England concurred with the Fed’s view and added that a protracted recession is anticipated. The hawkish commentary drove the dollar to soar along with US Treasury yields. However, FIIs' ongoing interest in the market and strong earnings kept the domestic market losses in check. Domestic PMI numbers also worked in favour of Indian equities as manufacturing and service activity remained healthy in October. With mounting concerns about a global recession and the anticipation of muted Q2 results from Tier 2 and 3 companies, markets are likely to be volatile in the upcoming week.
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