Down but not Out

The domestic equity market fell last week on the back of higher than predicted inflation numbers in the US for May 2022. This spooked the equity market globally and we are no exception. Higher inflation will make the US Federal Reserve more aggressive in hiking rates, which will strengthen the USD index further that is already trading at a 20-year high. Historically, we have seen there is inverse relation between stocks, including the Indian equity market and the USD index. The question that most of you have in mind now is at what level we can see the equity market bottoming out if we see a continuous rise in USD index.