Floods will hit tyre & coffee industries

The market has continued to move up, hitting successive highs through last week. This is due to the foreign portfolio investors changing stance from being heavy net sellers to moderate buyers

The stock market ignored bad news out of Turkey that led to a rout for emerging market currencies. Instead, investors hailed strong Q1 earnings reports, strong industrial activity and lower headline inflation. The resumption of China-USA trade talks was viewed with optimism since every global investor is hoping that the US backs down on threats of hiking import tariffs and, ditto the Chinese. 

The rupee crash was not unexpected. The Turkish lira just provided a trigger. India has a large, growing trade deficit and the Current Account Deficit could rise to 2.5 per cent of GDP in 2018-19. Even at