Investors pour record money into equities even as bond yields rise: BofA.
India’s economic growth likely to pick up soon, says Morgan Stanley’s Jonathan Garner.
Second salary hike within six months by TCS.
US equity funds sucked in USD 53 billion as ultra-easy monetary policy continued to boost risk appetite.
Investors put a record USD 68.3 billion into equity funds in the week to March 17, even as a spike in government bond yields sent the high-flying Nasdaq index reeling, BofA data showed on Friday. US equity funds sucked in USD 53 billion as ultra-easy monetary policy continued to boost risk appetite.
BofA warned of tightening global financial conditions, however, with eight interest rate hikes across the world so far this year versus five cuts.
Meanwhile, the US Federal Reserve pledged to look past inflation and keep interest rates near 0 percent until at least 2024. Still, the yields on 10-year notes spiked on Thursday to 1.75 percent.
That move sparked a massive sell-off on Wall Street with the tech-heavy Nasdaq 100 slumping 3.1 percent, wiping off more than USD 400 billion from company valuations in a single session.
BofA said the ”uber-dovish Fed backfired” with bond vigilantes moving quickly to try to bully the central bank into yield curve control – pinning down yields on bonds of a particular maturity.
Global equity funds have attracted USD 347 billion so far this year, matching record inflows seen for 2017 as a whole. On an annualized basis, this year’s inflows are a ”breathtaking” USD 1.6 trillion, BofA said.
”We are in (the) midst of (the) strongest macro data of our lives,” BofA investment strategist Michael Hartnett wrote in a note to clients. But some cracks have started to appear. He said the Spring vaccine shortage in Europe and emerging markets means any disorderly bond yield rise could be negative for second-quarter economic growth.
Tata Consultancy Services (TCS) will hand out across-the-board salary increments for 2021-22, becoming the first IT services company to do so. The salary hike roll-out will benefit nearly 4.7 lakh employees of the company.
The average increment band for offshore employees is expected to be 6-7 percent as per norms, sources privy to the development told PTI. This would be the second salary hike within six months by TCS.
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