India's stock markets have taken a sharp hit after SEBI's foreign investment KYC regulations and IL&FS mishap. Overall, markets consistently remained vulnerable to news flows and reacted sharply anything to bad ones. Overall, it is a type of market with sell on bad news and avoid buying on good news. News flows and reactions in markets are particularly focused on following 5 factors which would again will remain influencing factors for a while. We believe investors should stay cautious and watchful of following five factors. 1> Bond yields India's 10 year bond yield was hardening since the last one year which is unhealthy for stock markets, given that flows move to bonds and fixed income investments from low yielding high valuation stock markets. Difference between bond and earnings yields crossed the danger mark in February itself. However, it was ignored on account of high amount of liquidity flowed into mutual funds and HNI accounts ...