Corporate earnings, bond yields: 5 factors that will guide markets in FY22

According to a March 19 note by BofA Securities, US 10-year Treasury yields could rise to 2.15 per cent by the end of calendar year 2021

The outgoing fiscal year was marred by the onslaught of the Covid-19 pandemic. Indices hit four-year lows on March 23, 2020, a day before India locked down to contain the spread of Covid-19. Sensex and Nifty closed at 25,981 and 7,610, after crashing 33 per cent in just 13 trading sessions. Market capitalisation dropped from Rs 160.6 trillion in mid-January to Rs 102 trillion on March 23.

Recovery has been swift since then. Stimulus measures announced by the government and the central bank helped markets to soften the fall and then to rebound. Such was the liquidity that the one-year rolling