Recently, we have seen huge sell-off in the global bond market as nervousness deepened that central banks are moving toward reducing stimulus efforts that have supported debt markets Almost all the central banks be it the US Federal Reserve, European Central Bank, the Bank of England or the Bank of Canada, each one is preparing the markets for a gradual withdrawal from accommodative monetary policies.The global economy is experiencing synchronous growth, labor markets are improving and consumer spending and business investment have picked up. However inflation is running below central banks’ targets. The recent data on inflation shows that there is a pickup in inflation but it still remains below desired levels in most developed economies.The minutes of the US Federal Open Market Committee’s June policy discussions shower a split over inflation. Minutes from the ECB released indicated that the ECB was worried about how best to communicate increasing confidence in the eurozone economy without roiling market. The news of shifting monetary policy trajectories of central banks have led to the volatility in both stock market and Forex market.The Bank of Japan and the European Central banks are scheduled to meet on July 20 and Fed interest rates decision is scheduled on July 26. Though Fed Chair Yellen has said that the US economy is healthy enough for the Fed to proceed with plans to raise rates and begin winding down its massive bond portfolio, but it is expected that Fed would slow the pace of rate hikes down the road and interest rates would remain historically low over the longer term.Emerging economies including India have undoubtedly been benefited from the environment of lower interest rates.Among all major economies, the interest rate regime in India only is on a downward trajectory.Meanwhile, recent data pointed to slowing industrial production growth and to a falling retail price inflation has given room to the Reserve Bank of India (RBI) to resort to accommodative stance from neutral at the review meeting on August 2.The markets know that the long period of low rates has to end sometime and a gradual normalisation of policy rates may not necessarily impact the stock markets. However, a sudden change in yield expectations may cause volatility in the market. As the fundamentals of the Indian economy are strong, any inorderly tapering by the major central bankers would have limited impact on the Indian stock market.So, it is advised to use any dip into the market as buying opportunity and remain invested for long term as India is a bright spot among its peer though its valuation looks rich.