An inflationary environment is a key theme investors can t ignore, says Morgan Stanley analysts.
In a research note, analysts highlight inflation indicators are pointing to further increases ahead.
We list 10 high pricing power stocks set to benefit in this environment, according to Morgan Stanley.
Morgan Stanley s global inflation surprise index recently turned positive for the first time in two years.
The 10-year treasury yield has risen this week to 1.615%, its highest in over a year, as investors demand higher returns for bonds, as the prospect of a strengthening economy has, in turn, fueled expectations that growth and inflation will pick up more sharply.
Ahead of Market: 12 things that will decide stock action on Wednesday
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Overall, market breadth remained in favour of bulls. As many as 186 stocks on the BSE 500 index settled the day in green, while 312 settled the day in red.
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NEW DELHI: Nifty opened above the crucial 15,000 mark and held the levels despite a volatile trade as the headline index formed a small bullish candle with a long lower shadow on the daily chart.
Rohit Singre, Senior Technical Analyst at LKP Securities, said, Nifty managed to crossed the 15,100 zone decisively which acted as a strong hurdle previously. We may see some more positive move going forward if it manages to sustain above the 15,100 zone on an immediate basis. Nifty has a strong support at the 15K mark and hurdle zone for Nifty is coming near 15,170-15,250 zone.
Going ahead from here, despite some temporary technical pullback that cannot be ruled out, Nifty is bound to find resistance in the 15,200-15,275 zone.
By Sarah Ponczek
Apple Inc. has slumped 15% since late January. Tesla Inc. has lost more than a quarter-trillion dollars in market value in three weeks. And more than $1.5 trillion has been wiped off the Nasdaq 100 in less than a month.
And yet, none of it has been enough to rattle the retail investor.
Instead, to borrow a Reddit phrase describing bullish gumption, they’ve had diamond hands. Since the market peaked a few weeks ago, retail traders have plowed cash into U.S. stocks at a rate 40% higher than they did in 2020, which was a record year. They’re opting for parts of the market that have suffered the most, doubling down in arguably risky ways with triple-leveraged tech funds and options galore.
Your weekly recap/outlook
This past week was one where the market just couldn t make up its mind. US stocks surged on Monday after suffering their worst decline in months the prior week. Then inflation fears and spiking bond yields spooked investors anew as Fed Chair Jerome Powell failed to calm nerves.
The tides turned again on Friday as anxious dip-buyers quickly pulled tech stocks back out of correction following a monster jobs report that nearly doubled forecasts. Now it s anyone s guess where the market heads next week.
The volatility is stemming at least partially from uncertainty around how signs of economic progress should be interpreted. On one hand, encouraging labor-market data should have investors excited about the prospect of increased consumer spending. But on the flip side, an economy that runs too hot risks runaway inflation the sort of thing addressed by higher interest rates. And when rates rise, stocks lose luster. It s quite the catch-22.