New Delhi, Sept. 29 -- The US bond market has emerged as one of the important triggers for the Indian stock market. At the same time, the massive investment cycle around artificial intelligence (AI) has intensified demand for capital, particularly in the US technology sector, according to market experts.

For India, the combination of high US bond yields, a strong dollar, elevated crude oil prices and stretched valuations has created a challenging environment for foreign portfolio investors (FPIs).

Analysts say that any sharp reversal in the AI investment cycle could potentially alter these global capital flows by bringing down US bond yields and redirecting money towards emerging markets.

The benchmark 10-year US Treasury yield stood a...