CONCERNS AROUND global economic growth led by rising rates have taken the wind off commodities as prices across the board have come off from their 52-week highs. The sharpest correction is in the prices of base metals nickel and zinc, which fell 41% and 30%, respectively, from their highs. Energy prices, too, have come down a bit as crude oil has fallen below $100/barrel, correcting 13% from its peak, and natural gas has had a sharp 59% correction from its peak. While precious metals have fallen, a sharp decline in prices has also been seen in agricultural commodities. According to Axis Securities, given the fall in major commodities, inflation is likely to moderate in the coming months. While that could keep the equity markets on the boil, unexpected hikes or escalation in geopolitical events could pose a major risk as well.

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