Ukraine war, inflation: Factors that will guide stock market in Samvat 2079

Rising inflation triggered by geopolitical tensions amid the Ukraine-Russia war and ensuing global central bank action to tighten the monetary policy hit equities in Samvat 2078. Indian equities, however, proved to be resilient, bolstered by healthy retail and HNI participation, expanding systematic investment plans (SIPs), and lump-sum inflows which helped offset the large outflows from foreign portfolio investors (FPIs).

As we enter Samvat 2079, analysts expect markets to remain under pressure and witness more volatility in the near-term on account of deterioration in global macros, and uncertainties prevailing in western economies.

WATCH: What’s behind the worst Samvat show