Indian equities are scaling new highs, but rising US Treasury yields are creating a fresh layer of uncertainty for investors—particularly in the expensive mid- and small-cap segments. With valuations stretched in parts of the broader market, the risk is that higher global rates could make investors more selective and leave little room for earnings disappointments.
So, is the current mid- and small-cap rally backed by fundamentals, or is liquidity and momentum doing the heavy lifting? And as US yields remain elevated, which businesses could emerge stronger while expensive stocks come under pressure?
