The current times are uncertain as any that Indian markets have encountered in many decades. While multi-decades-high inflation in the US was threatening to put an end to the party in the markets, geopolitical tensions have complicated things. According to some eminent economists, stagflationary threats are brewing too. Yet another whammy could come from the US Fed as it proceeds with monetary tightening. As the 1970’s stagflation experience indicates, not tightening monetary policy due to commodity shocks (Oil shock of the 1970s) ended up causing a decade-long bitter economic experience.

Why should India worry? Well, when the US sneezes, the world invariably catches cold.