State of market affairs
The benchmark Nifty50 has oscillated in a tight range in the past eight weeks. On a point-to-point basis, it’s hardly changed - remaining mostly in the 19500-19700 range. More importantly, it has weathered a barrage of bad news in this period and stayed calm as reflected in the low volatility index. Some of the noteworthy events weathered by the market include - hawkish commentary from central bankers (including the RBI and the US Fed); downgrade of global growth estimates; poor growth guidance by IT services companies; a truly ominous escalation of hostilities between Israel and Palestine; erratic monsoon season and consequently elevated food inflation & cloudy outlook for the rural demand leading to a sharp rise in global crude oil prices; opinion polls indicating some setback for the ruling BJP in the forthcoming state assembly elections; etc. The bond yields in developed countries have risen to levels not seen in the past two decades. The US benchmark (10yr G sec) bon...