Further rate hikes can start hurting earnings: Sampriti Cap

Sandeep Shah of Sampriti Capital says people are not looking at more than a 50-75 bps interest rate increase but from hereon every incremental 25 bps is going to cause pain. “Interest rates have reached that inflection point where they actually start hurting earnings.”

May 09, 2011 / 17:25 IST
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An interesting week lies ahead, after crude prices fell off following weak newsflow coming out of US markets. A big drop in commodity prices last week and jittery European markets may bring about a boost in investor sentiments. Falling crude prices are likely to lend a helping hand to emerging markets like India which is buckling under inflationary pressures at present.

Sandeep Shah, the CEO of Sampriti Capital, tells CNBC-TV18 that over the last few months there has been a lot of movement in asset classes, be it commodities, gold or equities. He says it has been a largely liquidity driven rally.
first published: May 9, 2011 10:59 am

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