Emerging markets (EMs) have an inverse relation with bond yields in the US. Experts say, most funds have pegged their money flow into EM equity with 10 year US bond yield, a medium term gauge of dollar liquidity. Fund managers say, a sudden rise in US 10-year bond yield has hurt stocks more than the government's de-monetisation plan. Slow and steady yield rise may not worry investors. With yields now rising, exacerbated by the Trump victory, sectors that saw the strongest re-rating could come under stress."

Source: Economic Times November 17, 2016 12:25 UTC