In focus with Tushar Pradhan - April 2022

In focus with Tushar Pradhan - April 2022

• March was a volatile month for equity markets owing to the concerns around Russia-Ukraine war and the resultant spike in global commodity prices. After undergoing correction in the first week, the markets retraced for the remainder of the month and posted gains
• S&P BSE Sensex & NSE Nifty indices were up 4.1 per cent / 4 per cent respectively, while the broader markets also gained, with BSE Midcap / BSE Smallcap indices returning 3.3 per cent 5.9 per cent respectively
• There was significant volatility in the global crude oil prices even though the MoM increase was only 6.9 per cent. During the month, the crude oil prices breached USD 130 / barrel, the highest level seen post the GFC phase, but retraced thereafter. Rebound in equity markets intra-month broadly mirrored the drop in oil price from its peak levels
• Domestic news flows were broadly supportive for equity markets during the month. BJP led NDA won 4 out of 5 states that went into polls earlier this year, which indicated status-quo on the policy stance. The economy is almost fully out of restrictions now, with last of the restrictions viz international flights also being restored towards the end of the month. Most of the COVID restrictions have now been removed across the country and this augurs well for steady economic recovery. However, increasing fuel prices (driven by elevated global crude oil prices), could push up inflation and may have an adverse impact on the consumption demand in the near term