Analysts say markets are likely to remain event-driven in the near term, with volatility expected to persist amid elevated crude oil prices near $106 per barrel, continued weakening rupee (touched new low of 96.2 against the US dollar), rising bond yields and mounting inflationary concerns are collectively creating a challenging backdrop for domestic equities. While domestic earnings and economic activity remain relatively resilient, investors are increasingly concerned about the second-order impact of elevated energy prices on inflation, fiscal balances, liquidity conditions and the RBI’s future policy trajectory.
STATE OF THE MARKETS
