US bond market: Why AI blowout holds key for the Indian stock market?

The US bond market has emerged as one of the important triggers for the Indian stock market. At the same time, the massive investment cycle around artificial intelligence (AI) has intensified demand for capital, particularly in the US technology sector, according to market experts.

For India, the combination of high US bond yields, a strong dollar, elevated crude oil prices and stretched valuations has created a challenging environment for foreign portfolio investors (FPIs).