Bond buyers see the ‘best bang for buck’ in EMs as hiking cycles end
The asset class stands to benefit from benchmark rates that are higher – and inflation rates that in some cases are lower – than in the US. In Latin America, central banks acted quicker than the Federal Reserve when price pressures started bubbling up, ultimately tightening more.
Shrinking stock-bond yield gap hints at a stronger equity show
The spread reached a high of 236 bps in December 2022. Historically, spreads in excess of 200 bps yield negative returns in the medium term. A lower spread between the earnings yield and bond yields suggest investment in equities will be beneficial.
Case for stocks is seen in the model showing economic bottom is past
The index analyzes monthly changes in key inputs that factor into calling a recession, including capacity utilization, jobless claims, manufacturing and sentiment. It indicates that an economic downturn possibly started in June and bottomed in December.
Nifty likely to aim for 18,200-18,300: Analysts
We reiterate our preference on banking, financials, FMCG and auto; and be selective in others. Axis Bank has formed a strong base around the long-term moving average.