Global bond yields rise. Will it hurt Indian stocks?
As global bond yields surge, India’s borrowing costs remain surprisingly resilient.
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Aarati Krishnan
Aarati is the Head of Advisory at PrimeInvestor.in PMS. A leading voice in the Indian financial services space, she has been tracking and writing about the entire gamut of financial products and regulations in India for over 30 years now. She was earlier Consulting Editor with the Hindu Business Line and Value Research Online. She is a member of SEBI’s Mutual Fund Advisory Committee. Her columns have influenced regulations and policymaking for the financial sector at a national level. LinkedIn | Twitter
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4 thoughts on “Global bond yields rise. Will it hurt Indian stocks? ”
nice article. Unlike the fear on the wall street, the situation is not that grave for India and Indian equities. However flight of capital out of India will continue with US treasuries yield rising and differential between Indian and US bond yields narrowing. Add to that the usual rupee depreciation and Indian markets are no more attractive to foreign investors. Earnings growth is the only trigger to hope for.
Yes FII flows are a concern
What about the impact on Indian bonds? What duration and class of debt funds are suitable in today’s scenario? Thank you.
In India too rates and yields will go up but perhaps by 25 to 50 bps. Better to stick to short duration bonds as of now.