CLSA technical analyst Laurence Balanco believes rising global bond yields are becoming the biggest threat to equity markets, replacing oil as the key risk indicator. He warns that tightening liquidity conditions and weakness in AI-led semiconductor stocks could trigger a broader global risk-off move.
While Balanco sees downside risk for the Nifty and continued pressure on banks and autos, he remains constructive on Indian midcaps, select pharma names, telecom stocks, and certain Adani Group companies showing strong technical setups.
“Cyclical side of the market also correcting…difficult to see major breakout for Nifty over next 4 months,” says Laurence Balanco of CLSA.
