Geopolitical tension and impact on Indian market
In situations of geopolitical tension or war, there exists a typical sequence of events that unfolds as follows: · Rising Oil Prices : Geopolitical tensions often lead to an increase in oil prices. · Heightened Inflation : The rise in oil prices contributes to higher inflation. · Elevated Interest Rates : To combat inflation, RBI may raise interest rates. · Slower Economic Growth : Higher interest rates can result in slower economic growth. · Diminished Corporate Profits : A slower economy can affect corporate profits. · Reduced Earnings per Share (EPS) : Lower corporate profits can lead to decreased earnings per share. · Declini...