The week that was, Sensex, Nifty down 2% each
Rising inflation and rising bond yields continue to haunt the sentiments. Spiking crude oil prices is the major concern at the current juncture.
The Indian equity market extended losing streak to fourth consecutive day amid uncertainty over Karnataka elections verdict. The political drama continues to unfold as the Supreme Court denied extension of time to BJP and announced Floor Test on Saturday May 19, 2018 scheduled at 4pm.
If all this was not enough, rising inflation and rising bond yields continue to haunt the sentiments. Spiking crude oil prices is the major concern at the current juncture, oil touched US80$ per barrel for the first time since November 2014, has the potential to topple India’s fiscal balance.
In addition, Trade negotiations between the U.S. and China could see some stress. US President Donald Trump said on Thursday that China, Europe and other countries have become “very spoiled” on trade and that US cannot allow that to happen anymore.
Meanwhile, retail inflation rose to 4.58% in April, up from March’s 4.28% due to a surge in petrol and diesel prices and other miscellaneous items. Wholesale inflation on the other hand in April hit a 4-month high at 3.18%.
In terms of result, Bajaj Finance, Tata Steel, Lupin, JK Tyre, and JSW Steel came out with better than expected results. While Punja