Cautious attitude in global equity markets to welcome the new year 2022
- Higher-than-expected inflation rates could prompt global central banks to tighten lending policy ahead of time The new variant of the deadly epidemic Kovid-18 Omikro has once again created an atmosphere of terror in the global economy. In addition, rising inflation and liquidity crises have added fuel to the fire. In the calendar year 2021, the benchmark BSE Sensex and the NSE Nifty of the Indian stock market have seen a sharp rise of 20 to 5 per cent. Meanwhile, global equity markets, including India, appear to be on high alert to welcome the new calendar year 207. The main risk, market analysts say, is that the existing vaccine is less effective for a new variant of the Covid-12 transition, Omicron. Rising inflation is also a threat to the asset class in 2021, even though many brokers-traders believe that the current high inflation rate is temporary. However, volatility relative to projected inflation rates could prompt the world's central banks to tighten monetary policy an...