Market Recovery Driven by Positive Global & Domestic Cues: Experts
After three consecutive weeks of losses, the Indian stock market made a strong comeback, closing the week with gains of nearly 2 per cent. This sudden turnaround has left many investors and market observers wondering what drove this impressive recovery. According to market watchers, among the key drivers, the global sentiment improved following reports of a delay in US tariffs and the possibility of further negotiations, which helped stabilise financial markets.
The Indian stock market, which had been experiencing a sluggish trend for the past few weeks, witnessed a significant rebound in the past week. The benchmark indices, such as the Sensex and Nifty, surged by over 2 per cent, with the Sensex closing at 38,934.13 and the Nifty ending at 11,533.30. This impressive recovery was largely driven by the positive global cues, which helped boost investor confidence.
The delayed imposition of US tariffs on Chinese goods and the possibility of further negotiations between the two countries were seen as a major positive development. This news helped alleviate concerns about a global trade war, which had been weighing on investor sentiment. As a result, many investors turned bullish on the Indian market, leading to a significant surge in stock prices.
Domestic cues also played a crucial role in driving the market recovery. The Indian economy has been showing signs of improvement, with the GDP growth rate rebounding to 5.8 per cent in the June quarter. This improvement in economic growth has boosted investor confidence, leading to a surge in stock prices.
Another key factor that contributed to the market recovery was the robust earnings performance of many companies. Many blue-chip companies, such as Hindustan Unilever, TCS, and Infosys, reported impressive earnings, which helped boost their stock prices. This robust earnings performance has helped to alleviate concerns about the impact of the global trade war on the Indian economy.
The market recovery was also driven by the influx of foreign funds into the Indian market. Foreign institutional investors (FIIs) have been net buyers of Indian stocks for several weeks, and this trend continued in the past week as well. The inflows of foreign funds helped to boost the market, leading to a surge in stock prices.
The recovery in the Indian market has also been driven by the improvement in the overall macros. The inflation rate has been under control, and the current account deficit has been narrowing. These positive macros have helped to boost investor confidence, leading to a surge in stock prices.
According to market experts, the market recovery is likely to continue in the coming weeks as well. They believe that the positive global cues and the improvement in the domestic economy will continue to drive the market forward. They also believe that the robust earnings performance of many companies will continue to boost stock prices.
“Despite the recent volatility, the Indian market is looking strong. The positive global cues and the improvement in the domestic economy will continue to drive the market forward. We expect the market to recover further in the coming weeks,” said a leading market expert.
Another market expert agreed, saying, “The market recovery is a result of the positive global cues and the improvement in the domestic economy. We expect the market to continue its upward trend in the coming weeks as well.”
In conclusion, the market recovery driven by positive global and domestic cues is a welcome sign for investors. The delayed imposition of US tariffs and the possibility of further negotiations between the US and China have helped to alleviate concerns about a global trade war. The improvement in the domestic economy, the robust earnings performance of many companies, and the influx of foreign funds have also contributed to the market recovery. As a result, investors can expect the market to continue its upward trend in the coming weeks as well.
