A 30 percent rise in oil prices makes both equities and economy vulnerable as higher oil prices increase utility, freight and transportation costs, adding to inflation
Over-heated bond yields in the US and ever-increasing crude oil prices broke investors’ confidence on Indian markets. In the sharpest single-day decline since August, India stock markets lost over 1 percent on Wednesday as jittery investors rushed to take money off the table with the 10-year treasury yields in the US jumping to nearly 16-year highs or highest since 2007.
Typically, bond yields and equity markets work in inverse. Rise in bond yields make it an attractive asset class, as investors tend to sell equities and pump in more money into bonds.