Bond Yields Gain Edge Over Nifty Dividends, Challenging Stocks

NewsletterMarkets Daily IndiaBond Yields Gain Edge Over Nifty Dividends, Challenging StocksPatchy profits, foreign outflows and limited exposure to AI are hurting Indian equities.FacebookXLinkedInEmailLinkGiftExpandIndian five hundred rupee banknotes.Photographer: Dhiraj Singh/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Ashutosh Joshi and Alex Gabriel SimonMay 19, 2026 at 2:37 AM UTCBookmarkSaveLock This article is for subscribers only.Good morning... I’m Ashutosh Joshi in Mumbai, with a mood check on the markets. Asian stocks are off to a cautious start as investors weigh the prospects for a resolution to the Middle East conflict, alongside the threat that rising bond yields pose to equity markets (more on that in the Indian context below). With crude prices hovering around $110 a barrel, Indian policymakers continue to look for ways to ease pressure on the rupee and foreign-exchange reserves. The government is considering higher import duties on vegetable oil, while state-owned banks have been asked to cut back on domestic and overseas travel spending. There are a few encouraging signs, though. Global funds were provisional net buyers of local stocks for a second straight session on Monday, and the pace of outflows has slowed, hinting that some overseas investors may be starting to see value in the market again. Meanwhile, Adani Group shares will be in focus after flagship Adani Enterprises agreed to pay $275 million over a US probe, a step that could help clear one of the legal overhangs on the conglomerate. In today’s newsletter, we look at: