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 raised hopes among investors, and experts believe that the recovery is driven by a combination of positive global and domestic cues.
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 easing of trade tensions between the US and China has also contributed to the positive sentiment, as it has reduced uncertainty and volatility in the global markets.
Domestically, the Indian economy is showing signs of recovery, with the country’s GDP growth rate expected to improve in the coming quarters. The Reserve Bank of India (RBI) has also taken steps to boost economic growth, including reducing the repo rate and increasing liquidity in the system. These measures have helped to boost investor confidence and increase the flow of money into the market.
The Indian government’s efforts to stimulate economic growth through fiscal measures, such as increasing public spending and reducing taxes, have also been cited as a positive factor. The government’s decision to increase the minimum support price (MSP) for farmers has also boosted sentiment, as it is expected to increase rural incomes and consumption.
In addition, the Indian rupee has appreciated against the US dollar, which has made foreign portfolio investors (FPIs) more optimistic about investing in the Indian market. The rupee’s appreciation has also reduced the risk premium on Indian assets, making them more attractive to investors.
Experts believe that the current market recovery is sustainable and that investors should maintain a positive approach. “The market has been oversold in the recent past, and the current recovery is driven by fundamental factors such as improved global sentiment and domestic economic recovery,” said Ritesh Jain, a market expert. “We expect the market to continue its upward trend in the coming weeks and months.”
Another expert, Jatin Gadhia, also echoed similar sentiments. “The market has corrected significantly in the recent past, and the current recovery is driven by a combination of global and domestic factors. We expect the market to continue its upward trend, driven by the improvement in global sentiment and the expected recovery in domestic economic growth.”
Despite the current market recovery, experts caution that investors should remain cautious and avoid making impulsive decisions. “The market is still volatile, and investors should avoid getting caught up in the euphoria of the current recovery,” said Ritesh Jain. “It is essential to maintain a long-term perspective and avoid making impulsive decisions based on short-term market fluctuations.”
In conclusion, the Indian stock market’s recent recovery is driven by a combination of positive global and domestic cues. The easing of trade tensions, improvement in global sentiment, and domestic economic recovery are all contributing factors to the current market recovery. Experts believe that the current market recovery is sustainable and that investors should maintain a positive approach. However, they also caution that investors should remain cautious and avoid making impulsive decisions.
