๐ Fed hike and bond yields stress Indian markets
Soaring US bond yields and an expected Fed rate hike are causing market jitters for Indian equities. This week, the benchmark 10-year US Treasury yield surpassed 5% for the first time since 2023. Economists predict the Federal Reserve might hike rates further by the end of March, amid inflation concerns. Analysts warn this tight global monetary policy could trigger capital outflows and pressure on the rupee. Therefore, a cautious 'wait and watch' approach is advised while assessing these shifting global factors. ๐