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Last week the benchmark Nifty50 crossed the 25000 level for the first time ever. Statistically speaking, it’s just a number and does not mean much in the broader picture. Nonetheless, it is noteworthy in the current context, because this milestone was crossed amidst a flurry of news flow which calls for closer attention of investors. BoJ rattled the markets by deepening commitment to normalization First of all, the Bank of Japan hiked the policy rates by 15bps to 0.25%. Governor Kazuo Ueda committed that if the economy and prices move in line with our projection, we will continue to raise interest rates. BoJ does not see 0.5% as any key barrier when raising rates; clearly indicating that the shift in BoJ’s monetary policy is definite. A steeper hike by the BoJ, than currently estimated, could present several short-term challenges for the global markets. A stronger yen on rising JGB yields could (i) adversely impact Japanese exports; (ii) worry the JPY borrowers who may have...