Will rising US bond yields hurt equity momentum?

Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends and investment opportunities. This is Saloni Goel.

The first week of 2022 was a solid one for key indices, with NSE Nifty surging 2.64 per cent despite daily Covid cases topping the 1 lakh mark in India. The market took heart from economic readings, including GST numbers and monthly PMIs, and also from India Inc commentary that hinted at a strong earnings season ahead.

ETMarkets.com caught up with Ashwin Patni, Head of Products and Alternatives at Axis Mutual Fund to know what will drive the equity market in the rest of 2022. Patil also talked about rising US bond yields and its impact on Indian equities along with his investment mantra.

Welcome to the show, sir.

1. With equities seeing double-digit returns for the past three years, would 2022 be a year of consolidation?

2. How would rising US bond yields impact domestic markets?

3. What is that the market is factoring in terms of earnings growth for say next four quarters? Do you see scope of downward revisions?

4. Rural demand has been hit hard. We can see it in sales of two-wheelers. Do you see it reviving in 2022? What sectors would you look at or avoid?

5. Banking is one space that has been battered of late. What made banking stocks fall? Do you see the recent recovery to sustain?

6. What would be your investment mantra for investors in 2022?

Thank you Mr Patni. That's all in this week's special podcast. Do keep checking this space for more such interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!