Moneycontrol Pro Panorama | Inflation worry? China may have a hand in it

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

Inflation is on everyone’s mind these days. It has prompted the US Federal Reserve to change its view on when to draw back from its ultra-loose monetary policy stance. It is also making the RBI look hard at the data to justify its support for growth by keeping interest rates unchanged. While central banks may have preferred to let the growth party run for some more time to sustain the momentum, rising inflation is forcing them to reconsider their positions.

One of the party spoilers may be China itself is the conclusion of this piece in today’s edition. China has cemented itself as an exporter of choice because of its ability to provide low-cost products at scale. From being accused of exporting deflation to the world, it’s now being viewed as a possible driver of inflation. Data since May 2017 shows that US import prices from China were in deflationary territory since 2017, but have been rising since last year and have risen very sharply over the past three months. What explains this and will this sustain is a question you may ask. Do read to know the answers.

Public-sector company Bharat Electronics’ shares are in good spirits after its results. It features in today’s edition for setting itself apart from other defence PSU stocks on better execution and its diversified portfolio, while our research team’s analysis of its earnings and growth potential indicate that its attraction for investors has not dulled yet.

Republished from the Financial Times and free to read for Pro subscribers: Downward spiral in liquidity is leading to more market shocks

Investing insights from our research team:

NMDC: Demand from steel industry holds the key

DFM Foods: Is the company well placed to resume high growth?

What else are we reading today?

Chart of the Day | Corporate earnings race ahead of expectations

E-commerce and the policy confusion

What should investors do when it’s raining IPOs?

Technical picks: DCW, Himadri Speciality Chemical, Voltas and Ashok Leyland (These are published every day before trading begins and can be read on the app) 

Ravi Ananthanarayanan

Moneycontrol Pro