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ten year yield up .50% (greater than yields in some countries) from announcement of the bank recapitalization plan (yet to be executed, circular in any event) coupled with increased government borrowing, higher than expected inflation, and higher oil prices in an economy that imports 80% of its energy requirements

the rule of 72 at 7% yields capital doubles every 10 years. why choose the risk of equities at 27x trailing earnings that are flat ?

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With the 10-year yield up 73 basis points in 2017, benchmark sovereign bonds are set to end a three-year winning run, during which the yield slipped 231 basis points, as the Reserve Bank of India reduced benchmark rates to the lowest since 2010.

“Inflation, current account and fiscal dynamics are likely past their best phase and set to deteriorate,” said Eugene Leow, a Singapore-based fixed-income strategist at DBS Bank. “Overall, risks are building on the horizon, muddied by the rise in commodity prices.”

financials at over 30 % of the nifty and 40% of the sensex with the re balancing.