Nifty down 1.07%; sell-on-rise scenario may exist for some time, say experts
High oil prices also feed into inflation, necessitating the central bank to be more hawkish in its monetary policy than it so far it has conducted itself
India's benchmark 10-year bond yield was trading steady on the day at 6.52% by 0655 GMT, after earlier rising to 6.54%, its highest level since Jan. 31, 2020
This raises the prospects of higher lending rates
China's yuan eased against the dollar on its first trading day of 2022, after posting full-year gains for two straight years
Gold prices held steady on Monday as higher US Treasury yields offset safe-haven buying sentiment due to an Omicron-driven surge in Covid cases globally.
Traders are expecting the central bank to come in with some form of support to help the market ahead of the debt sale on Friday
Monday's rise in bond yields was also triggered by the quarter-end selling by mutual funds and other investors, said bond dealers
The rupee closed at 76.09 a dollar, up from its previous close of 76.23 a dollar
Historically, there is a negative correlation between the bond yield and India Inc's interest cost.
10-year bond yield may touch 6.5% soon, guided by orderly evolution motif of RBI
Analysts expect up to a 10% decline in the broader markets due to these changes in global macroeconomic conditions
World stocks climbed to a one-month high on Tuesday due to rally in technology shares and prospects of solid corporate earnings
India imports 80% of its oil needs and high prices result in increased imported inflation and have a spiralling impact on the prices across other sectors.
The broader Nifty50 declined 86.10 points or 0.49 per cent to close at 17,532.05
After surging 5%, the Sensex ends the month only 2.7% up
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The dollar also scaled a four-month high versus the euro
This was the seventh consecutive occasion when the central bank maintained a status quo on policy rates