Business & Economy
Indian Stocks Slide As Bond Yields Hit 19-Year Highs
Banks and financial shares lead losses as borrowing costs rise globally.
Banks and financial shares lead losses as borrowing costs rise globally.
Indian stocks are falling as investors pull back from risky assets around the world, after climbed to a 19-year high. Higher borrowing costs overseas, along with still-high oil prices, are making investors question whether many shares are too expensive, especially banks, financial companies, and other shares that move with .
India was already under pressure before the sharpest drop. Its own bond yields were rising, and the was weakening. For investors and households, that can mean bigger swings in the market, higher loan costs if rates stay elevated, and less chance of a quick recovery. The main question is whether this is only a fresh round of lower valuations or the start of a longer period of tighter money and slower gains.
Indian stocks fell more than 1.6% as the bond-yield shock fed directly into equities. The selloff was led by banks, financials, and other rate-sensitive or , while Indian government bond yields also climbed and traders pointed to global yields, oil, and expectations of a hawkish as the main pressure points.
remained near multiyear highs, keeping pressure on equities and other risky assets. That backdrop left Asian markets, including India, vulnerable to another round of selling ahead of the next session.
weakened in early trade after the U.S. hiked rates and signaled more , lifting local borrowing costs. Traders said domestic yields could rise further because of crude, inflation expectations, and higher global rates.
Indian benchmark indices ended sharply lower as elevated oil prices and rising global bond yields hit sentiment. The closed at a five-month low and the also dropped more than 1%, with reports saying the U.S. yield spike and caution were feeding the selloff.
The surged to its highest level since 2007, briefly topping the 5% mark and reaching a 19-year peak. Coverage said the move raised concerns about a prolonged high-rate environment and weakened appetite for .
Indian equities had already been under pressure for several sessions, with rising and bond yields adding to the selling. One market report said the benchmark and had closed higher in only one of the previous seven sessions, showing that the slide was already building before the sharpest drop.