There could be more correction in the equity market if there is a further rally in commodities and anticipation of higher inflation over the coming quarters, according to market expert opinion.
“India has been slightly decoupled from the US markets and it should continue to enjoy that premium. The focus on growth and government support towards incentivizing manufacturing and creating infrastructure will attract foreign inflows and support the markets over the coming quarters,” Divam Sharma, Founder at Green Portfolio tells Moneycontrol.
But Sharma ruled out 15-20 percent correction from here on in coming quarters.
Do you think the RBI has delivered the statement as per your expectations. Is it the right decision given the global central banks hinting faster policy tightening to fight inflation?
This meeting has underlined the focus of RBI on economic progress and manufacturing activity above all else. They do not seem to be worrying about decoupling from the US Fed’s stance.
This is understandable considering the inflation in India is still below the RBI’s 6 percent range and hence they can afford to delay the policy shift. We expect the RBI to follow the global course of rate hikes over the coming meetings but with a slight lag.