Multiple factors to keep markets on tenterhooks after Friday's fall

Surging US bond yields, LTCG implementation, RBI policy action amid widening of fiscal deficit targets to weigh on investor sentiment

Market players are worried about the direction the stock markets will take this week, following Friday’s bloodbath in US equities and the correction in bond prices. The yield on the benchmark 10-year treasury note touched a four-year high as fears of inflation and aggressive rate hikes by the US Federal Reserve spooked investors. 

Domestically, the widening of the fiscal deficit targets has raised concerns of a reversal in the policy stance by the Reserve Bank of India (RBI) weighing on banking shares, which have significant weight in stock indices. The reintroduction of the tax on long-term capital gains (LTCG) and