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 upswing is being attributed to the positive global and domestic cues that have boosted investor sentiment.
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 US-China trade tensions have been a major concern for global investors, and any positive development in this regard is likely to have a calming effect on the markets.
In addition to the global factors, domestic cues also played a crucial role in driving the market’s recovery. The Indian economy, which has been facing some challenges in recent times, showed signs of improvement in the latest data releases. The GDP growth rate, which had slowed down in the previous quarter, rebounded in the latest quarter, indicating a pickup in economic activity.
Moreover, the RBI’s decision to cut interest rates by 0.25 per cent in its recent policy review has also had a positive impact on the market. The rate cut is likely to boost consumption and investment, and the reduced borrowing costs are expected to benefit the economy.
The impact of these positive cues is evident in the performance of the stock market. The S&P BSE Sensex, which had fallen sharply in the previous three weeks, closed the week with gains of nearly 2 per cent. The NSE Nifty 50 also rebounded, gaining around 1.8 per cent during the week.
Experts believe that the market recovery is likely to continue in the near term, driven by the positive global and domestic cues. “The market has been correcting for some time now, and the recent rebound is a sign of a possible reversal,” said a market analyst. “The global sentiment has improved, and the domestic economy is showing signs of recovery. These factors are likely to continue to support the market in the near term.”
Another expert pointed out that the recent correction in the market had created buying opportunities, and investors who had been waiting on the sidelines were likely to jump in and take advantage of the lower prices. “The correction had made the market more attractive, and investors are likely to take advantage of the opportunities,” said the expert.
The rebound in the market is also being driven by the inflows from foreign investors, who had been selling Indian stocks in recent times. The foreign institutional investors (FIIs) have been net buyers of Indian stocks in the recent weeks, and their inflows have been supporting the market.
The market recovery is also likely to be supported by the upcoming earnings season. The earnings season, which is expected to start soon, is likely to provide investors with a better understanding of the companies’ financial performance and their outlook for the future. Strong earnings growth is likely to boost investor sentiment and support the market.
In conclusion, the market’s recovery is being driven by the positive global and domestic cues. The delay in US tariffs, the possibility of further negotiations, and the improvement in the domestic economy are likely to support the market in the near term. The rebound in the market is also being driven by the inflows from foreign investors and the upcoming earnings season. investors who are cautious about the market and had been waiting on the sidelines are likely to take advantage of the opportunities and jump in to buy stocks.
The article can be read at: https://investmentguruindia.com/newsdetail/market-recovery-driven-by-favourable-global-and-domestic-cues-maintain-positive-approach-experts148033
