Introduction

The Reserve Bank of India held rates steady in the policy review as broadly expected and revised its inflation forecast upward to 5.4% for this year. Brokerages who were largely gung-go in the last month are now beginning to sound a little sanguine about Indian equity markets. The Goldilocks position for Indian equities is getting questioned with crude rallying China gaining traction, rising India consumer price inflation, and yields moving up. IEA estimates that global oil demand hit a record 103 million barrels per day in joule and could scale another peak this month.