Markets fall most in a month; benchmarks dip 0.7% as FIIs turn net-sellers

Besides weak global cues, investors have turned cautious ahead of the Union Budget following the sharp gains this month

Benchmark indices declined by 0.7 per cent, most in almost a month, tracking weakness in other global markets amid a sell-off in the developed world bond markets. Global investors' risk appetite took a beating after the yield on the US 10-year treasury note rose to a high of 2.72 per cent, most since April 2014. Experts say rise in interest rates could be spoil the stock market party as it would prompt investors to rethink their allocation. Bond yields and prices move in opposite direction. Higher bond yields make equity markets relatively less attractive.

Bond yields, particularly in the US, are