Wildest yield hole since 2001 boosts attract of bonds, exhibits knowledge

India’s inventory bulls have extra causes to fret after having suffered back-to-back weekly losses as yields on the federal government bonds climb with international friends.

The ratio between the nation’s benchmark 10-year yield and the BSE Sensex index’s present earnings yield is now on the highest degree since 2001, dimming the enchantment of equities.

Nonetheless, ICICI Securities isn’t swayed, saying in a notice Monday that Indian equities don’t look overvalued relative to bonds even after the yield spike, including {that a} state of affairs of upper financial development and reasonable inflation could be bullish for shares.

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