After a stellar liquidity-driven run in Samvat 2077, experts are suggesting that investors should brace for a volatile phase for Indian equity markets in Samvat 2078. The market direction, they say, will be guided by a host of domestic and foreign factors that will keep the markets choppy. These include: Commodity prices and their impact on inflation and corporate earnings Policy stance of global central banks, especially the US Federal Reserve A fresh wave of Covid infections, if any Global developments like economic recovery and China factors IPO pipeline and liquidity with retail investors While rising input prices, especially those of crude oil and coal, have seen the markets trim gains in the past few weeks, analysts at Nomura have penciled in 0.6-0.7% rise in inflation over the next few months as a result of this. Sonal Varma, chief economist for India and Asia ex-Japan, Nomura, said: “We estimate the impact on headline inflation to be as much as around 1 percentage point over th...