@Wayneqq:Although it looks like inflation is easing.. it is important to see it from the perspective of theconsumers and how they can afford things.. rise in wages have not kept up with inflation.. we are talking about 8+% rise in inflation on a month on month basis.. what this means is an item that cost 100 bucks last month is going to cost more than 108 bucks this month.. and going to cost more than 116 bucks (108*1.08) next month.. i dun believe anyone wages is going up by that amount.. Businesses would either pass this cost to consumers or absorb it themselves.. Absorbing it means lower profit.. hence reduce earnings and stock prices would likely go down.. Passing to consumers means less people can afford or want to buy if it is discretionary products and services means less