Downside for Indian markets will be limited in case of a global correction: Mark Matthews

Mark Matthews, head of research for Asia, Julius Baer Group shares his views on the road ahead for equity and bond markets.

Global markets have reacted sharply to the rise in US bond yields. MARK MATTHEWS, head of research for Asia, Julius Baer Group tells Puneet Wadhwa that right now it is premature to say global markets are entering into a bear phase. Though he remains bullish on India, he advises staying away from the mid-and small-caps. Edited excerpts:

Is the market reaction to rising bond yields overdone?

Central banks have been taking the liquidity away, starting with the US Federal Reserve (US Fed). That's one reason that the bond yields have started rising. The other reason is that the global economy is growing