FOREIGN OUTFLOWS , RISING YIELDS WEIGH ON INDIAN MARKETS ; EARNINGS TO DRIVE RECOVERY : HSBC

What happened: HSBC Mutual Fund said foreign outflows and rising global bond yields remain key headwinds for Indian markets, while an earnings recovery is expected to drive equity returns near term. Key numbers: Nifty 50 fell 6 per cent in September, Nifty Midcap 150 fell 7.1 per cent, Nifty Smallcap 250 dropped 3.1 per cent. IT and auto stocks fell 11 per cent and 9 per cent. Why it matters: HSBC expects corporate earnings growth to be the driver of near-term market returns, and said it would consider adding duration if US Treasury yields or crude oil prices moderate sustainably.

HSBC Mutual Fund said foreign outflows and rising global bond yields remain key headwinds for Indian markets, while an earnings recovery is expected to drive equity returns near term.

HSBC expects corporate earnings growth to be the driver of near-term market returns, and said it would consider adding duration if US Treasury yields or crude oil prices moderate sustainably.