Rising bond yields, commodity prices to cap market upside, say analysts

According to a recent report by BofA Securities, 31 Nifty50 companies are exposed to commodity-related risks and cautions that the full impact of the rise in commodity prices is yet to play out

A sharp surge in bond yields coupled with rising commodity prices have come back to haunt equity markets, with most analysts expecting a limited upside for the equity markets from here on.

On Friday, Asian stocks traded sharply lower after Wall Street's main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark US Treasury yields, which hit their highest level since the pandemic began – up 14 basis points (bps) at 1.5286 per cent. The surge came on the back of expectations of a strong economic expansion and related inflation.

“In line with the global trend,