Market Recovery Driven by Positive Global & Domestic Cues: Experts
After a three-week losing streak, the Indian stock market made a strong comeback, closing the week with gains of nearly 2 per cent. The sudden turnaround has left investors optimistic about the future prospects of the market. According to market watchers, the global sentiment improved significantly following reports of a delay in US tariffs and the possibility of further negotiations, which helped stabilise financial markets.
The Sensex, which had been struggling to hold onto its gains, saw a significant surge, closing at 38,944.34 points, up 732.54 points or 1.91 per cent. The Nifty50 also followed suit, closing at 11,546.35 points, up 222.45 points or 1.96 per cent. The broader markets also participated in the rally, with the small-cap and mid-cap indices rising by 3.13 per cent and 2.73 per cent, respectively.
The improvement in global sentiment was a key driver of the market’s recovery. Reports of a delay in US tariffs and the possibility of further negotiations between the US and China helped to calm investor nerves. The US and China have been engaged in a bitter trade war, with both sides imposing tariffs on each other’s goods. The tension had been weighing on global markets, but the recent developments have brought some relief.
The Indian market was also boosted by positive domestic cues. The country’s economic growth has been facing headwinds due to a slowdown in the manufacturing sector and a decline in consumer spending. However, recent data showed that the economy grew at a faster pace than expected in the June quarter, with GDP growth rising to 7.1 per cent. This has boosted investor confidence and led to a rally in the market.
The rally was led by the IT sector, which saw gains of over 4 per cent. The sector has been a key driver of the market’s performance in recent years, and its strong showing has contributed to the overall gains. The FMCG sector also rose sharply, with gains of over 3 per cent. The sector has been facing headwinds due to a slowdown in consumer spending, but its strong performance in the recent quarter has boosted investor confidence.
The banking sector also participated in the rally, with gains of over 2 per cent. The sector has been facing challenges due to the NBFC crisis, which has led to a tightening of credit conditions. However, recent data showed that the sector’s asset quality has improved, and its profitability has risen. This has boosted investor confidence and led to a rally in the sector.
Experts are optimistic about the market’s prospects going forward. “The market’s recovery is driven by positive global and domestic cues,” said A.K. Prabhakar, a leading market analyst. “The delay in US tariffs and the possibility of further negotiations have improved the global sentiment, and the strong economic growth data has boosted investor confidence. We expect the market to continue its upward trend in the coming weeks.”
Another expert, R. Venkataraman, a well-known market strategist, said, “The market’s recovery is also driven by the valuations, which have become attractive after the recent correction. The market is trading at a lower price-to-earnings ratio compared to its historical average, which makes it an attractive investment opportunity. We expect the market to continue its upward trend in the coming weeks and months.”
In conclusion, the market’s recovery is driven by positive global and domestic cues. The delay in US tariffs and the possibility of further negotiations have improved the global sentiment, and the strong economic growth data has boosted investor confidence. Experts are optimistic about the market’s prospects going forward and expect it to continue its upward trend in the coming weeks and months.
