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What the rise and rise of the Big Mac Index foretells for Indian equities

What the rise and rise of the Big Mac Index foretells for Indian equities
What the rise and rise of the Big Mac Index foretells for Indian equities
Illustration by Sadhana Saxena via AI.

Synopsis

The Big Mac inflation, which uses burgers instead of basket of goods used by economists to measure consumer pricing, is on a continuous uptrend since 2021. It indicates that US rate cuts are far away. So, what does it mean for Indian stock market?

While the US’s consumer price index (CPI) inflation is down, its Big Mac inflation is rising relentlessly. And investors aren’t Lovin’ It! Are costly burgers the reason why foreign investors have turned net sellers in Indian equities in April? One wonders. But certainly, they are pushing bond yields in the US market higher. Over the last one year, the 10-year bond yields are high at 4.6% as compared to 3.57% in April 2023. In India, 10-year
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The Economic Times