Investors will stop worrying when diesel & LPG price is passed onto consumers: S Naren

S Naren, CIO - Equity, ICICI Prudential AMC in an interview with ET Now talks about his outlook for the market based on inflation numbers.

The kind of inflation data that we saw yesterday, do you think it would peak out soon and, therefore, Indian equities would deliver a greater performance then?

There is something called base effect in inflation that will work positively post October but while a lot of attention is given to the inflation numbers, the way we look at it is that it is still understated because of the fact that diesel price hike has not been passed on to the customers, neither has the LPG or kerosene been passed on.

In my opinion, investors will stop worrying about inflation the moment these price rises are actually passed on to the customers because then they know that the bad news on inflation is about to end. Now we have a situation where people worry about how much is understated because of the lack of price pass through.