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    Nifty Financial Services index stocks: Will they decline sharply as US bond yields inch up and go into risk-off mode?

    Financial services stocks and IT stocks are the main components of the Nifty

    Synopsis

    Whether it is upward or southward movement of Nifty and Sensex, it is largely led by financial services stocks which include banks, both private and public sector and other heavyweights which essentially are part of the financial services. The reason, high ownership of foreign portfolio investors ( FPIs) in the majority of financial services and banking stocks. Given the fact that yields on US bonds have reached closer to 5 percent mark and there are clear fears looming on the street, about an increase in global cost of capital.

    Financial services stocks and IT stocks are the main components of the Nifty. While IT sector stocks did not bring in the pressure, which was the positive surprise of this earning season. But there is a looming fear of financial stocks playing the spoil sport. The reasons are, with US bond yields rising, there is fear that excess global money will go back to its home country, which is the US. On the other hand, China wants to give a push to its
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    The Economic Times