Equity Quiver To Combat Inflation

“Inflation is as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man.” That was the late US President Ronald Regan. Reganomics, which defined his policy of drastic tax cuts to fuel economic growth, was a success back in the eighties. But the woes of inflation remained as much a scare even today and forever. Inflation, simply put, is the decline of purchasing power of a given currency over time. Of all that helps fight an ailing economy, equity markets are considered widely by pundits as a potent tool to beat the hydra-headed monster called inflation. India’s retail inflation in mid-June stood at 6.3 per cent, outstripping the 4.23 per cent rise recorded in April. Benchmarked to the consumer price index (CPI), India’s retail inflation breached the central bank’s mandated target range of 2-6 per cent for the first time in five...