A lot of the rising prominence in emerging markets is thanks to the mid-cap segment. Even as other major emerging markets like China have underperformed, they too have rebounded in the last few months.

Pre-election results jitters have now set into the markets which is reasonably logical and to be expected despite a victory priced into the market already

Volatility levels rise amidst general elections and a rising VIX levels could also trigger short term bearishness according to analysts so the markets will be in the jittery zone for some time.

The markets are still running on sound momentum but there is some underlying nervousness that is creeping in which is expected till the results of general election are announced on June 4

With markets having recovered from or adjusted to the twin factors of middle east tensions and shifts in capital flows because of high US interest rates, small caps are back on the run.

Foreign institutional investors are continuing to sell India. FIIs net sold Rs 11,867 crore worth of  stocks in the cash segment last week, taking the total monthly outflow to Rs 22,229 crore thus far in April

The stock markets started giving into selling pressure, due to the overhang of high interest rates, funds moving back to bonds and tensions in the middle east.

Uncertainty in the Middle East is a factor that will drive stock markets down and other commodity prices from oil to gold up. It appears, going by some reports, that Israel will retaliate against Iran for its missile attack on Israel

Tensions in the middle east have risen to fresh levels after Iran let loose a barrage of missiles towards Israel which appeared more to demonstrate it would not sit quiet after its embassy in Syria was bombed by Israel

The 10-year Indian government bond yields rose to 7.14%, similar to US Treasury yields which went up after strong economic data further pushed back expectations around the timing of the first rate cut by the Federal Reserve