Sharp dip in US 10-yr bond yield can once again favour renewed FPI buying

Going forward, banking and finance and automobiles will continue to do well, but many other segments are struggling. Capital goods appear to be on a strong wicket and have the potential to deliver market beating returns for many quarters more, he said.Cues from the US market are favourable; particularly the sharp 14bp dip in the US 10-year bond yield last Friday can once again favour renewed FPI buying, he added.Latest data from the US indicate a slight cooling of the economy but the labour market continues to be strong. Markets will be keenly watching the July CPI print for clues on the Fed decision in August.Indian market valuation is likely to remain elevated compared to peers. In spite of this, India has the potential to deliver superior returns in the long run, he said.BSE Sensex is up 80 points in trade on Monday morning at 65,799 points. M&M is up 3 per cent.--IANSsan/dpb

(Disclaimer: This post has been auto published from IANS news agency without any modification to the text and has not been reviewed by editor)