Growth stocks, especially with high valuation multiples are vulnerable to high inflation rates. In order to curb inflation, the central bank raises interest rates which ultimately causes bond yields to rise. This doesn’t bode well for growth stocks.
Eicher Motors shares fall over 4%, Maruti Suzuki 3%. Here’s why
The Nifty auto index was one of the worst performing sectors and fell 0.87% and was trading at 16,042.85. In the 15 stock index only