Russia-Ukraine conflict will boost inflationary trends: Nitin Sharma, FIL

Every $10 increase in crude prices lowers India's GDP growth by around 20 basis points and increases domestic inflation by 30 basis points

Geopolitical and macroeconomic uncertainty will keep the equity market volatile over the coming months, says Nitin Sharma, Director Research & India Site Head, Fidelity International (FIL). In an interview with Ashley Coutinho, he says despite the recent correction, India is trading at a sizeable premium to most emerging market peers. Edited excerpts:

The market has seen a fair bit of volatility of late. What is your equity outlook for the coming months?

A combination of geopolitical and monetary factors, combined with the uncertainty around the post-pandemic recovery path, will keep equity markets volatile over the coming months. The primary tide