Soaring in first half of FY24, equity markets likely to hit air pocket

Benchmark and broader market indices up 11-42% but rising US bond yields, oil prices threaten to pull them down

The equity markets, especially the small and midcap space, have demonstrated an impressive performance during the first half of 2023-24 (H1FY24). But escalating oil prices and US bond yields could potentially weigh on their showing in the second half of the financial year.

At the start of FY24, investor sentiment was subdued. A combination of sustained rate hikes by global central banks, sticky inflation, and a banking crisis in the West had taken a toll on the Indian market's performance. Days before the start of this financial year, the Sensex and the Nifty hit their five-month lows of 57,527 and