In focus with Tushar Pradhan - May 2022
Shift in policy stance indicate pandemic concerns waning
20 May 2022
In focus with Tushar Pradhan - May 2022
- Supply side disruption & higher commodity prices, due to the ongoing war has given rise to a ‘sticky’ inflation phase as opposed to it being ‘transient’. This is leading to a shift in central bank policy stance globally with the earlier accommodative stance being withdrawn and the policy makers turning more hawkish in their approach
- Global equity markets saw significant correction during April driven by expectation of rising interest rates coupled with adverse macro and the ongoing geopolitical crisis. However, Indian equities outperformed global equities, despite showing a decline during the month
- S&P BSE Sensex & NSE Nifty indices were down 2.5 per cent / 2 per cent respectively, while the broader markets gained, with BSE Midcap / BSE Smallcap indices returning +1.3 per cent / +1.4 per cent respectively. There was divergence in sector wise performance too, with Utilities being a major gainer followed by Auto, Energy and Consumer Staples. Technology was the top loser followed by Realty, Communication Services and Metals