Dalal Street faces a double whammy of Fed rate hike, soaring bond yields. Are Sensex and Nifty heading for a bigger crash?

Dalal Street faces pressure from rising US bond yields and expectations of a Federal Reserve rate hike, raising concerns over equity valuations and foreign flows. However, analysts say the impact may depend on earnings growth, currency movements and global liquidity, with some arguing that higher yields need not necessarily trigger a sharp market correction.