Market Recovery Driven by Positive Global & Domestic Cues: Experts
The Indian stock market has been on a rollercoaster ride in recent weeks, with three consecutive weeks of losses culminating in a major correction. However, the market has finally shown signs of recovery, closing the week with gains of nearly 2 per cent. According to market experts, the global and domestic cues have played a significant role in this turnaround, and investors are advised to maintain a positive approach in the coming weeks.
The recovery in the Indian market comes on the back of improved global sentiment, which was triggered by reports of a delay in US tariffs and the possibility of further negotiations between the US and China. The news of a potential trade deal has helped stabilize financial markets, leading to a rebound in global equities.
“The global market has been under pressure in recent weeks due to trade tensions and economic uncertainty. However, the recent development has brought some relief, and investors are now looking at the Indian market with optimism,” said Rakesh Jhunjhunwala, a renowned stock market expert.
In addition to the global cues, domestic factors have also contributed to the market recovery. The Indian economy has been showing signs of slowing down, with GDP growth falling to a five-year low in the June quarter. However, the recent monetary policy announcement by the Reserve Bank of India (RBI) has provided a much-needed boost to the market.
The RBI had cut the repo rate by 35 basis points to 5.4 per cent, which is expected to boost economic growth. The reduction in interest rates is expected to increase borrowing and spending, leading to an uptick in economic activity.
“The RBI’s decision to cut interest rates has provided a much-needed stimulus to the economy. The reduction in interest rates will increase borrowing and spending, which is expected to boost economic growth,” said Sonam Udasi, Chief Investment Officer at IDBI Federal Life Insurance.
The market recovery has been led by the Nifty, which has gained nearly 2 per cent in the past week. The index has been consolidating in a narrow range over the past few weeks, and the recent breakout is a positive sign for investors.
“The Nifty has been trading in a tight range for some time now, and the recent breakout is a positive sign. We expect the market to continue its upward momentum in the coming weeks,” said Santosh Meena, Head of Research at Swastika Investmart.
The recovery in the Indian market has also been driven by the performance of certain sectors, which have been showing signs of strength. The IT sector, which has been a major driver of the market in recent years, has been leading the charge.
“The IT sector has been a major driver of the market, and its performance has been impressive in recent times. We expect the sector to continue its upward momentum in the coming weeks,” said Gaurav Garg, Research Analyst at CapitalVia Global Research.
The pharma sector has also been showing signs of strength, with the Nifty Pharma index gaining nearly 3 per cent in the past week.
“The pharma sector has been recovering well in recent times, and we expect it to continue its upward momentum in the coming weeks. The sector is expected to benefit from the government’s initiatives to improve healthcare infrastructure,” said Geojit Financial Services in a research report.
In conclusion, the market recovery driven by positive global and domestic cues is a welcome sign for investors. The recovery in the Indian market is expected to continue in the coming weeks, driven by the performance of certain sectors. Investors are advised to maintain a positive approach and take advantage of the ongoing market momentum.
