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. The sudden turnaround in the market’s fortunes is attributed to a combination of positive global and domestic cues, according to market experts.
The global sentiment improved following reports of a delay in US tariffs and the possibility of further negotiations, which helped stabilise financial markets. This development sent a positive signal to investors, encouraging them to return to the markets and drive prices higher. The US and China have been engaged in a trade war for several months, and any positive developments in this regard are likely to have a significant impact on global markets.
In addition to the global cues, domestic factors also played a crucial role in the market’s recovery. The Indian economy has been facing challenges in recent times, including a slowdown in GDP growth and a decline in consumer confidence. However, the government’s recent initiatives, such as the announcement of a stimulus package and the relaxation of FDI norms, have helped to boost investor sentiment.
The Reserve Bank of India (RBI) also played a significant role in the market’s recovery by cutting interest rates and introducing measures to increase liquidity. These moves are expected to have a positive impact on the economy and the stock market, and are likely to continue to support the market’s upward momentum.
Despite the recent gains, market experts are advising investors to maintain a positive approach and not get overly optimistic. While the current market conditions are favorable, there are still several risks that investors need to be aware of, including the ongoing trade war and the potential for further monetary policy tightening in the US.
In an interview with Investment Guru India, Harsh Jain, Co-founder and CEO of Groww, said, “The market has been driven by positive global and domestic cues, and we expect this trend to continue in the coming weeks. However, investors need to remain cautious and not get too optimistic, as there are still several risks that could impact the market’s performance.”
Another expert, Vinay Bharat Ram, Founder and CEO of Faad Network, also emphasized the need for investors to be cautious. “While the market has made a strong comeback, investors need to be aware of the risks that could impact the market’s performance. The ongoing trade war and the potential for further monetary policy tightening in the US are just a few of the risks that investors need to be aware of,” he said.
In conclusion, the recent market recovery is a result of a combination of positive global and domestic cues. While the current market conditions are favorable, investors need to remain cautious and not get too optimistic. It is essential to maintain a positive approach and be aware of the risks that could impact the market’s performance.
