Rising interest costs

Maintaining moderate inflation is a little like trying to stay moderately pregnant.

  • Anonymous

With the G- Sec yield breaking the psychological 8% mark on the back of an unexpected increase in inflation at 5.24%,   the Equity markets respected the same and corrected by 4%.  Corporate India is likely to feel the heat and Market participants have to tone down their profitability expectations.

While the FM, Chidambaram may be vocal of taming inflation, it is unlikely that he will be able to contain the rising Input (commodities) and energy costs.  

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