India’s stock bulls have more reasons to worry after having suffered back-to-back weekly losses as yields on the government bonds climb with global peers.
The ratio between the nation’s benchmark 10-year yield and the BSE Sensex index’s current earnings yield is now at the highest level since 2001, dimming the appeal of equities.
However, ICICI Securities isn’t swayed, saying in a note Monday that Indian equities don’t look overvalued relative to bonds even after the yield spike, adding that a situation of higher economic growth and moderate inflation would be bullish for stocks.
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