2 months, 4 weeks ago

Mint Primer | Stormy Monday: What to expect, going ahead

A whirlwind of worries hit the equity market this week, leading to a massive sell-off on Monday. Fears of fewer US rate cuts and a raging dollar drained foreign liquidity from the system and dragged markets down. In the first three days of this week, foreign institutional investors net sold almost ₹16,600 crore of equities, more than what they sold in the entire last week. While a mid-week rally in US markets led by robust bank earnings and improving macroeconomic conditions offered some respite to domestic investors, it is expected to be short-lived. Rising US Treasury yields on expectations of lower interest rate cuts in 2025 have also turned riskier assets like emerging market equities unattractive for foreign investors.

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