The once-smooth ride of the Indian equity market is now showing signs of turbulence. Several concerning factors have emerged as obstacles to this steady ascent. Investor sentiment has taken a hit due to the international surge in crude oil prices. Since we rely heavily on crude oil imports, this development could exert additional pressure on our current account deficit and inflation. Another source of concern is the strengthening of the US dollar index, which typically has an inverse relationship with risk assets like commodities and emerging market equities.
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