X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BRIC nations submerged in inflation
Thu, 21 Apr Pre-Open

The BRIC nations- Brazil, Russia, India and China- have witnessed the longest rally in their stock markets since 1997. Investors have amassed humungous wealth during this period. Now the question is- Will the party go on? Well, the party may go on. But, the music may wane a bit; the lights may go out at times; and the glasses may have more water than wine.

Getting back to economics, rising inflation is the biggest threat looming over the BRIC economies.

China and India have witnessed a significant rise in consumer prices led by rising food, fuel and commodity prices. In Brazil, inflation shot up at the fastest pace in the last one month than it had in two years. The story in Russia too is running on a similar plot.

The central banks of all these emerging economies have been breaking their heads in their vain attempt to rein over the inflationary monster. Since October 2010, China has already raised its interest rates four times. The Indian central bank RBI has hiked rates 8 times in the past 12 months. And there are strong reasons to believe that there will be a 9th hike next month. On similar lines, Brazil has hiked its interest rates five times. And Russia too followed the cue and increased rates in February 2011. And it seems as if the central banks have lost control over the inflationary monster.

How is all this going to take a toll on the economy of these nations? On the one hand, companies have already been bearing the brunt of rising input costs. On the other hand, high interest rates pose a threat to their investments and expansion plans. So while high input costs will curb profitability, high interest rates will put a brake on growth.

We are not spelling doom for the BRIC economies. In fact, these economies are going to be driving the global economy in the coming times. However, the concerns that we have pointed out pose short to medium term risk that investors should bear in mind.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "BRIC nations submerged in inflation". Click here!

  

Stock Market Updates

Most Active Small-Cap Stocks Today; PC JEWELLER the Most Traded (Today's Market)

Dec 14, 2018 03:53 PM

Here's a list of most active small-cap stocks today. It also includes information on BSE Smallcap index and the broader benchmark indices.

Top 5 Mid-Cap Gainers Today; SUPREME INDUSTRIES Leads the Pack (Today's Market)

Dec 14, 2018 03:52 PM

Here's a list of 5 stocks that gained the most in the BSE Mid-Cap Index today. It also includes information on BSE Mid-Cap index and the broader benchmark indices.

SYNGENE INTERNATIONAL Surges by 5%; BSE HEALTHCARE Index Down 0.8% (Today's Market)

Dec 14, 2018 03:33 PM

SYNGENE INTERNATIONAL share price has surged by 5% and its current market price is Rs 582. The BSE HEALTHCARE is down by 0.8%. The top gainers in the BSE HEALTHCARE Index is SYNGENE INTERNATIONAL (up 5.4%). The top losers are LUPIN LTD (down 0.1%) and IPCA LABS (down 0.2%).

VARUN BEVERAGES LTD Plunges by 6%; BSE 500 Index Down 0.1% (Today's Market)

Dec 14, 2018 02:33 PM

VARUN BEVERAGES LTD share price has plunged by 6% and its current market price is Rs 734. The BSE 500 is down by 0.1%. The top gainers in the BSE 500 Index are RELIANCE NAVAL & ENGINEERING LTD (up 14.0%) and GUJARAT GAS LTD (up 5.4%). The top losers are VARUN BEVERAGES LTD (down 5.6%) and FORTIS HEALTHCARE (down 7.7%).

Sensex Trades Flat; Bharti Airtel & Yes Bank Top Gainers (Today's Market)

Dec 14, 2018 12:30 pm

The BSE Sensex is trading up by 35 points, while the NSE Nifty is trading up by 5 points.

COLGATE at All Time High; BSE FMCG Index Up 0.3% (Today's Market)

Dec 14, 2018 12:43 PM

COLGATE share price has hit an all time high at Rs 1,327 (up 1.3%). The BSE FMCG Index is up by 0.3%. Among the top gainers in the BSE FMCG Index today are COLGATE (up 1.3%) and NESTLE (up 0.4%). The top losers include MARICO LTD and P&G HYGIENE (down 0.1%).

View More Indian Share Market News

Most Popular

4 Rebound Stocks to Profit from the Current Small Cap Crash(Profit Hunter)

Dec 3, 2018

Indian small cap space is offering a discount season. Make sure you do not get too late to scoop up the bargains.

It's Almost the Perfect Time to Buy This Safe Stock(The 5 Minute Wrapup)

Dec 6, 2018

My latest StockSelect recommendation ticks all the boxes of a great safe stock.

Looking For Higher Interest Rates on Bank FDs? Read This!(Outside View)

Dec 5, 2018

Credit disbursement to the productive sectors of the economy such as infrastructure, engineering, food processing, textiles, and chemicals, among others is rising.

Are Foreign Investors Heading Back to the Indian Stock Markets?(Chart Of The Day)

Dec 3, 2018

After months of heavy FII selling, November witnessed a return on foreign money into Indian equities...

DSP Mutual Fund's Sale of DHFL Bonds: Here's What You Need to Know(Outside View)

Dec 5, 2018

PersonalFN explains the probable reason as to why the capital market regulator has initiated DSP Mutual Fund's bond sale that caused DHFL stock to crash.

More

Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 14, 2018 03:35 PM

MARKET STATS