Wildest yield gap since 2001 boosts allure of bonds, shows data
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...
Source: business-standard.com