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Stock Market Recession Fears: Sushil Kedia Explains Rate Hikes and Market Rally
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CNBC Awaaz•07-10-2026, 16:05
Stock Market Recession Fears: Sushil Kedia Explains Rate Hikes and Market Rally
- •Global bond yield tensions and rate hikes in India led to a sharp decline, with the Nifty dropping over 173 points near the 22,600 level.
- •Kedianomics founder Sushil Kedia believes that rising interest rates do not necessarily mean a recession and could instead trigger a new market rally.
- •Kedia noted that the 20-year cycle of falling interest rates bottomed out during COVID, signaling the beginning of a new era of rising rates.
- •He warns that the market should be prepared for the India 10-year yield to potentially reach 10.8 percent in the next three years.
Key Questions Answered
The Nifty index closed with a sharp decline of more than 173 points, finishing near the 22,600 level on Wednesday when interest rate hikes began in India.
Sushil Kedia projects that India's 10-year bond yield could rise up to 10.8% over the next 3 years. Meanwhile, he states that the US 10-year yield could reach 7% in the next year and a half to two years following some decline.
Sushil Kedia believes that rather than causing a market recession, a strong economy with rising interest rates can create conditions for a new market rally. He explains that rising rates are not inherently bad if they reflect a robust economy where prices and the value of money increase naturally.
