Sensex, Nifty ranged; Axis Bank top loser, Ashok Leyland down 4%
Generally Asian equities do not perform well in such an environment. The markets that have historically been most sensitive to this are Indonesia, the Philippines and Thailand. China, Singapore and Taiwan have tended to do better.
Hence, the brokerage house feels Asian equities tend to perform poorly in times of steeper yield curves but believes their long-term story remains intact. HSBC has maintained overweight rating on Indian equities and believes that the August CPI print of 5 percent marks the start of a prolonged period (approximately a year) in which CPI inflation is likely to trend at or below 5 percent.This makes us believe that there is room for a 50 bps rate cut, which would further support our case to be overweight on India.
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Generally Asian equities do not perform well in such an environment. The markets that have historically been most sensitive to this are Indonesia, the Philippines and Thailand. China, Singapore and Taiwan have tended to do better. 
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