Rising US Yields and Strong Dollar Keep Pressure on Indian Stocks as FIIs Continue Selling

Sustained rise in US bond yields causing continuous foreign institutional investor (FII) selling, putting pressure on Indian stocks.

Dollar index above 107 and US 10-year yield near 5% means FII selling likely to continue, bulls to remain on backfoot.

Caution prevails as RBI's Monetary Policy Committee meets this week, expected to maintain key repo rate unchanged at 6.5%.

Global cues negative in near term due to rising yields making bonds attractive over stocks, also increasing borrowing costs.

Investors advised to be stock specific, trim exposure to mid- and small-caps, shift to large caps amid global uncertainty.