The supply-chain crisis and trade shocks due to Russia’s invasion of Ukraine will lead to a huge rise in inflation over 6 to 8 months. As the Indian government cuts oil excise duties to counter this surge, the current account deficit will widen, weighing on the country’s growth. HDFC Bank recently downgraded its growth forecasts to 7.9% from the 8.2% projected earlier. The bank expects the current account deficit to stand at 2.3%.
The continuing conflict is expected to have further adve ..
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Impact on markets
Russia and Ukraine hold a significant share of the global commodities trade. Russia supplies 10% of the global nickel. Together with Ukraine, it accounts for 29% of the global wheat exports. Some other commodities they supply extensively include palladium, natural gas and corn. So, it comes as no surprise that the commodities sector touched record highs recently. The prices for nickel, aluminium and wheat rallied to their highest in 50 years on March 4, 2022 ..
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The debt market’s trajectory will depend on the inflation figures, outflows of foreign capital, the Indian government’s borrowing programme and the US Federal Reserve’s monetary policies. While rising inflation and rupee depreciation might decrease corporate profitability, the good news is that long-term growth forecasts remain resilient. Not only is policymaking on track, India has a huge domestic investor base today. This could be a great time for buy-on-dip strategies, as valuations come down ..
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https://economictimes.indiatimes.com/markets/stocks/news/russia-ukraine-war-throwing-up-opportunities-for-investors-in-4-sectors/articleshow/90333357.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
