Nifty McClellan Breadth
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highly oversold , maybe we will see a bounce back , also charts corborrating , Nifty is forming a Hammer and RSI is highly oversold, dashboard also shows nifty as 93 % all these pointo market being oversold
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The U.S. 10-year Treasury yield recently hit a 19-year high of around 5.24% to 5.28%.
The surge is a major headwind for Indian markets. A spike in risk-free U.S. yields triggers a domino effect that dampens investor sentiment in India:
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FII Outflows: Global investors pull capital out of riskier emerging assets like India to lock in safer, guaranteed returns in the U.S treasury bonds.
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Currency Depreciation: Continuous selling by foreign institutions pressures the INR, pushing it toward further lows against the USD. This creates pressure on equity markets.
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Valuation Pressure: 10 year yield is considered as global risk free rate in any valuation model. When the global risk-free rate rises, equity valuations compress, making highly valued Indian stocks look expensive.
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Higher Domestic Borrowing Costs: Indian bond yields typically rise in sync with global yields, increasing the cost of capital for Indian corporates thus putting more pressure on earning.
Interesting times ahead...
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