2.
High Inflation – Inflation has shot up to 8.43% in
August as against 7.48% in July. Food inflation
remains high at 16.91%.
Slow Reform Movement
Earnings Slowdown – Impacted by higher Operating
costs!
3.
Current Account Deficit
India’s current account deficit has surged to 4.1% of
GDP during second quarter of the fiscal as against
3.2% the previous year. Merchandise trade deficit
widened to $35.4 billion.
Industrial Growth
Rising Interest Rates – Bank rate, Repo rate
4.
Fiscal Deficit
FII Selling – Moving back to the West!
Global woes – Moody, S & P Ratings
Unforeseen Events – Kyoto Protocol, Natural
Disaster.
