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Saturday, Oct 23, 2021
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“Fundamentally, Nothing Has Changed For The Better Yet”

The vice-chairman and joint managing director of First Global Group talks of dipping oil prices and its role in lowering inflation.

“Fundamentally, Nothing Has Changed For The Better Yet”
“Fundamentally, Nothing Has Changed For The Better Yet”
outlookindia.com
-0001-11-30T00:00:00+05:53

Shankar Sharma, vice-chairman and joint managing director of First Global Group, has a clear view of the stock market boom. He says the sharp dip in global oil prices and its role in lowering inflation is the sole reason for the hype. In an interview, he tells Lola Nayar that nothing has changed fundamentally after the 2014 elections.

What is driving the stock market and how long do you expect this bull run to continue?

The sole reason why the stock market is up from 22,500 around election time to about 29,000 now, from a purely fundamental perspective, is that crude oil is at $45. The rest are all non fundamental and emotional factors that people use to analyse the market.

Oil at $45/barrel changes a lot of fundamentals for India. It changes the price of government borrowings. It changes long-term bond yields. It changes our current account deficit. It changes the inflation outlook. Therefore, it changes the interest rate outlook. In short, it has puts India in a place it has never been...

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