At its Friday close the Sensex had an earnings yield of 4.5 per cent against the yield on 10-year US government bond of around 3.69 per cent
Recent developments in the global equity and bond markets hint at a significant downside risk to the equity market. The US’ equity benchmark Dow Jones Industrial Average is close to giving up all its post-Covid gains and the financial incentive for foreign investors to own Indian equity assets is at the lowest since the 2008 global financial crisis.
The US equity benchmark closed on Friday at 29,592.85, just 41.43 points higher than its pre-Covid closing high of 29,551.42 made on February 12, 2020.
The Dow Jones is now down 19.6 per cent from its record high closing of 36,799.65, made on January
First Published: Sep 26 2022 | 6:05 AM IST