India experts pandemic economy India

‘Slow revival, inflation, covid key risks to rally’

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Fed has indicated at least two rate hikes by the end of 2023; how will it impact markets like India? There has always been a correlation of equity valuations with interest rates; so, in the normal process, asset market should get impacted if rates rise.

But all of this will have a moderate impact if the global economy sees a return to normalization from the pandemic. In India also, it will be no different.

An economy has its own strengths and weaknesses, capital flows remain democratic and in the near term they will behave in a synchronous manner. Do you think foreign institutional investors (FII) inflows to India will taper down gradually? We are really no experts on global flows.

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