Inflation, Election or Valuations; What Matters the Most?

Posted by Equitymaster
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Indian stock markets rallied throughout the week on the host of positive factors like sustained foreign fund inflows, stronger rupee and chances of the incumbent NDA government coming for a second term.

The good times are back… or so it seems. Mid-caps and small caps were under the weather. Now they’re bouncing back.

The coming few months are bound to be volatile.

In times like these, what matters the most? Inflation numbers, election outcome or the quality of businesses?

We talk about it in detail.

Meanwhile, macroeconomic data released this week also determined the market sentiment. Consumer price inflation for the month of February came in at a four-month high of 2.6%. And, inflation based on wholesale prices rose to 2.9% in February over the previous month.

So, given a slowing production and rising inflation, demands for rate cut have already begun. Whichever government comes to power, it will have to deal with this sobering reality.

Apart from this, we also talk about MSTC and other upcoming IPOs.

And there’s lots more.

Listen in to stay updated on key developments in stock markets this week.

This article (Inflation, Election or Valuations; What Matters the Most?) is authored by Equitymaster.

Equitymaster is a leading ‘independent’ equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.

Source: equitymaster.com

Post Author: kwiknewz

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