Food inflation has increased to 16.5% for the week ended March 20. This is increase of about .15% against the 16.2 percent of the week ended 13th March, 2010. Although this inflation has little impact on the stock markets of India which are rising on the account of fund inflows by foreign institutional investors. The way inflation and stock markets have become detached it is grim reminder of January, 2008, when stock Market was absolutely overpriced and the inflation was going up, and all of a sudden there was severe correction, which bruised the pockets of investors.
