•##As you can see, in 2013, inflation in India was skyrocketing. During this period (2013-2014), the interest rate on fixed deposits was 8.75%9.25%, and the repo rate was 7.5%. •## When inflation is high, RBI opts for a dear money policy and hikes lending rates to such an extent that credit is not easily available to the general public. But, along with expensive loans comes lucrative FD rates and investors prefer to opt for risk-free, favourable return instruments. But, during a recession, the stock market becomes a lucrative alternative to earn inflation-beating returns.