US Elections, 10-Yr Bond Yield Hit Equity Sentiments Globally. Will The Downturn On Nifty Continue?

What’s driving the current downturn in the Indian stock market? How are the upcoming U.S. elections and the 10-year U.S. Treasury bond yields impacting global markets? Vinit Bolinjkar, Head of Research at Ventura Securities, explains the dynamics influencing this trend. According to him, rising U.S. bond yields, driven by high national debt and market uncertainty, play a significant role, with American economic policies likely to impact global investor confidence. The potential economic strategies of both presidential candidates, whether fiscal tightening or increased spending, could lead to significant shifts in the flow of funds between equities and bonds. Additionally, the U.S. election outcomes could lead to vastly different fiscal strategies: a Trump-led government might push for strict fiscal discipline, potentially sparking short-term global market volatility, while a Harris-led administration could increase spending, which could impact bond yields and currency stability. He highlights the U.S. net savings rate currently stands at $22.5 trillion, supported largely by European investment inflows. Watch this video for insights on how these international factors might shape market movements.