The yield gap is a sign of how far the market is underpriced or overpriced. A negative yield gap indicates markets are overheating and maybe overvalued if you go purely by the quants.
Fed rate hike: The US Federal Reserve has raised its benchmark interest rate to the highest level since 2001. Indian IT players may suffer as a result. The question now is - has the rate hike cycle peaked?
The US Federal Reserve s 0.25% interest rate increase was expected and paved the way for India s reserve bank to take a measured approach to policy-making, according to analysts. Edelweiss mutual fund s Managing Director and Chief Executive Radhika Gupta said the Fed statement permitted the potential for more rate hikes, but the Indian economy currently didn t need further increases.