US bond yield spike, rising Covid-19 cases in India drag indices

The benchmark Sensex plunged over 1,300 points (or 2.7 per cent) from the day’s high on Thursday as the spike in US bond yields and rising Covid cases in India hurt investor sentiment. 

The index rose close to 500 points on opening after the US Federal Reserve (Fed) pledged to shrug off inflation worries for a while and keep the monetary policy loose through 2023. However, the 10-year US Treasury yields jumped to 1.74 per cent — a 14-month high — as investors turned jittery over rising inflation.

The US inflation is expected to exceed the Fed’s 2-per cent target to 2.4