Faster rise in US Treasury yields is narrowing the gap, potentially deterring foreign investors and keeping the rupee under pressure
The US 10-year Treasury yield has climbed to 5.32 per cent from 4.15 per cent at the end of 2025, a rise of 117 basis points (bps) so far in 2026. Brent crude oil, meanwhile, is testing $100/bbl mark.
Earlier, in the first nine months of the calendar year 2011, the BSE Sensex and Nifty had plunged 19.8 per cent and 18.9 per cent, respectively.
From a bottom-up perspective, there are more opportunities across the market given the challenging period that the market and economy have been through over the past two years, said Vetri Subramaniam.
Sensex Today | Stock Market Highlights, Thursday: In the broader markets, the Nifty MidCap and the Nifty SmallCap ended 2.25 per cent and 1.53 per cent lower, respectively
Over a five- or 10-year view, if I were an Indian mutual fund investor, it makes sense to allocate half of your inflows into small- and mid-cap funds, Wood said.
Growing inflation fears and expectations of monetary tightening by central bankers due to the spike in global oil prices are among the key drivers of the yields.
The rate on 10-year Japanese government notes, too, climbed higher to hit 3 per cent for the first time since 1996, while UK 30-year yields reached the highest since 1998.
Low-growth companies will not find favour, and better visibility of stronger growth over the medium term becomes a prerequisite to lure global investors, said Emkay.
Since the start of the West Asia crisis, 10Y sovereign yields have risen by more than 50 bps across several advanced and emerging markets, including Japan, UK, US, Canada, Italy, Spain and South Korea
According to DBS, the first risk is a sharp correction in US equities, particularly in tech stocks linked to the AI investment wave.
The yield on the 30-year US government bond recently crossed the psychological 5 per cent mark. The yield on 10-year US government bonds has also inched up
It may not stay that way given the gathering risks, notably credible estimates that deficits will continue to run well higher than 3 per cent of GDP
The spread between the benchmark 10-year Indian and US bonds has shrunk to a level last seen over two decades ago after the US Tax Bill
One early test comes Tuesday, when the US government is set to sell $58 billion of three-year securities, followed by 10- and 30-year maturities later this week
They sold a net $705.5 million of fixed-income securities on Jan. 8, according to the Central Depository Services figures compiled by Bloomberg. That's the biggest single-day sale since May 2020
Syndicate bankers expect to see companies raising nearly $65 billion this week, and perhaps as much as $200 billion this month, in a bond issuance spree that is showing no sign of slowing
Companies and government bodies have so far raised $37.6 billion via the instruments, known as SLBs, about 46 per cent lower than in all of 2023
This is the second time the conglomerate had to call-off a fundraising due to governance related developments
The indictment came shortly after units of clean-energy arm Adani Green Energy Ltd sold a 20-year green bond in the US investment-grade market