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 analysts wondering what triggered the sudden change in 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.
On the domestic front, the Indian government’s recent measures to stimulate the economy, such as the announcement of a stimulus package, have also contributed to the market’s recovery. The package, which includes measures such as reduced corporate tax rates and increased spending on infrastructure, is expected to give a boost to the economy and provide a much-needed impetus to growth.
Experts believe that the market’s recovery is driven by the convergence of both global and domestic cues. “The delay in US tariffs and the possibility of further negotiations have helped to reduce uncertainty in global markets, which has led to a recovery in Indian markets,” said Ramesh Vaswani, a leading analyst at a leading brokerage firm. “At the same time, the government’s stimulus package has also boosted investor sentiment, as it provides a clear signal that the government is committed to supporting the economy during a challenging period.”
The Indian stock market’s recovery has been led by the broader markets, with the Nifty and Sensex indices both ending the week with gains of over 2 per cent. The mid-cap and small-cap indices also performed well, with gains of over 3 per cent and 4 per cent respectively.
The recovery in Indian markets has also been driven by the improvement in the rupee’s value against the US dollar. The rupee had weakened significantly in recent weeks, leading to concerns about the impact on the country’s import bill and inflation. However, the improvement in the currency’s value has reduced these concerns and provided a boost to investor sentiment.
The Indian market’s recovery has also been driven by the improvement in the country’s macroeconomic indicators. The country’s GDP growth rate, which had slowed down in recent quarters, has shown signs of stabilising, with the latest data showing a growth rate of 5.8 per cent. The country’s inflation rate, which had risen sharply in recent months, has also shown signs of decelerating, with the latest data showing a rate of 3.2 per cent.
Experts believe that the market’s recovery is likely to be sustained in the coming weeks, driven by the convergence of global and domestic cues. “The market’s recovery is likely to be sustained in the coming weeks, driven by the improvement in global markets and the government’s stimulus package,” said Vaswani. “We expect the Nifty and Sensex indices to continue their upward trend, driven by the improvement in investor sentiment and the expectation of a rebound in earnings growth.”
The Indian market’s recovery has also been driven by the improvement in the country’s corporate earnings. The latest data shows that the country’s corporate earnings have shown a significant improvement, with many companies reporting better-than-expected earnings growth. This has led to a rebound in investor sentiment and a surge in stock prices.
In conclusion, the Indian stock market’s recovery is driven by the convergence of positive global and domestic cues. The delay in US tariffs, the government’s stimulus package, and the improvement in the rupee’s value against the US dollar have all contributed to the market’s recovery. Experts believe that the market’s recovery is likely to be sustained in the coming weeks, driven by the improvement in global markets and the government’s stimulus package. As a result, investors are advised to maintain a positive approach and invest in the market with a long-term perspective.
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