Goldilocks position for Indian equities is getting questioned: Jefferies

Rising crude oil prices, traction in China equities and high inflation concerns are casting a shadow on the road ahead for the Indian equities, believe analysts at Jefferies.

Rising crude oil prices, traction in China equities and inflation concerns back home are casting a shadow on the Indian equity markets in the short term, believe analysts at Jefferies.

They said this could see the markets remaining range-bound in the near term before the next leg up.

“Goldilocks position for Indian equities is getting questioned with crude rallying, China gaining some traction, rising India CPI (consumer price index-based inflation rate) and yields moving up.

Foreign portfolio investors (FPIs) have turned net sellers, and India has underperformed the MSCI EM by 3.2 percentage points (ppts) over the last one month,”