Good beginning - Is more than half done?
In the first few trading sessions of the calendar year 2022, the benchmark Nifty has gained close to 5%. This rather sharp up move has surprised many market participants, considering that macro conditions have deteriorated in the past two weeks. The inflation has increased. The global energy prices have risen sharply. The US Fed commentary has become particularly hawkish. The NSO has moderated the GDP growth estimates, forecasting it to be lower than the recent RBI estimates. The RBI has announced OMOs aimed at draining more liquidity from the market. The Corona cases have grown exponentially in the past two weeks, leading to stricter mobility restrictions. The latest IIP data has pointed to deceleration in economic growth momentum. Politically also, the ruling BJP may have lost some popularity points in the five states going to election from next month. This less expected strong performance of the markets has evoked mixed reactions from the market participants. One section of the ...