In their October 2022 report, analysts Amnish Aggarwal and Anushka Chhajed at Prabhudas Lilladher said, “Indian markets are currently having a roller coaster ride as global headwinds continue to drag strong domestic fundamentals. Rising GAS prices and disruption in global supply chains following Russia Ukraine war are driving inflation to a 15-20 year high in most developed markets. Consequently, hawkish stance by FED and other central banks is likely to push interest even higher in the coming quarters. Shortage of GAS and rising interest rates are likely to impact demand with rising fears of a recession in US and Europe.”
This week, on Friday, Nifty 50 closed at 17,314.65 down by 17.15 points or 0.1%. However, overall in the week, the benchmark has risen by more than 3%.
Although there has been a meaningful correction in commodity prices of Crude, Metals, Palmoil and various Agri commodities, Prabhudas Lilladher analysts do not rule out intermittent spurts in coming months.
“We expect global macro-economic situation to remain volatile in coming 3-6 months unless there is an end to Russia Ukraine war,” the analysts note added.
In terms of monetary policy, RBI has been hiking the repo rate for the fourth consecutive month by cumulatively 190 basis points. Currently, the policy repo rate is at 5.9%. The rate hike is in line with US rates. However, the gap…
