IGI Logo

Comment by SAS Online on intense selling from FII's especially today's and last Friday's trading sessions by Shrey Jain, Founder & CEO, SAS Online

The intense selling is due to the US yield touching 5% and expectation that it will remain higher for longer. The markets a few months back were expecting 1 or 2 rate hikes followed by a series of rate cuts starting towards the 2nd half of the next year. I think markets are readjusting to the possibility of 50 bps to 100 bps further rate hike or 25 bps to 50 bps rate hike followed by a long pause and no talk of rate cut. The US economic data is just not cooling off and the Fed seems to be confused but adamant to take the US in a mild recession. The sooner the US economy starts to cool off the better it may be for equity markets as it will allow the Fed to cut rates. FII flow may be back once rate cut talk starts.

Above views are of the author and not of the website kindly read disclaimer