It became clear again last Friday that the international economy can affect India. On Thursday night (India time), US price inflation eased slightly in October. 8 points fell from 2 percent to 7.7 percent. Of this news, the Sensex and Nifty jumped as soon as the market opened on Friday morning. They were hot all day. In the end, the Sensex rose 1181 points and reached 61 thousand 795 for the first time. Which is the index’s record high. Earlier on October 18 last year it closed at 61 thousand 766. That precedent was broken. The Nifty rose 321 to settle at 18,350.
Rise of the stock market
As the stock market rises, the price of money is increasing by leaps and bounds. The foreign investment firm’s stake in India fell several days after the dollar fell to the Rs 80 mark. 80 points are 78 rupees. The same day news came, industrial production rose 3 points 1 percent in September. It was down 0.8% in August. These statistics also give strength to the stock market of the country.
Investors assume that the top bank of the country, the Federal Reserve, may not increase the interest rate again in the next round, as the price increase in the United States has fallen. And if the price pressure decreases, they may be able to avoid financial recession. The world economy will survive. The way forward will be wide for a promising country like India.
India’s rate of price increase in October will be known this evening. The movement of the share index will depend a lot on this figure. If the rate of inflation like in America comes down, the rate of the interest rate increase will slow down in India as well. The cost of credit will reduce the industry. Investment propensity may increase. Which will widen the path of financial growth. The stock market can rise higher to these signs. Concerned circles speculate that a new example of height may be created. Speculations suggest the rate of inflation may drop to 6.73 percent. It was 7.41% in September.
Wrapping up
The price of crude oil Brent crude, which rose to 139 dollars at one time, has been hovering between 90 and 100 dollars for quite some time. Besides, India buys cheap oil from Russia. Earlier India used to import nominal from them. Now it is 22 percent. Along with this, the price of the dollar is also falling. As a result, the cost of importing various products or raw materials including oil will be reduced. This may pave the way for further reduction in the rate of price increase in the country. Not only that, despite the rise in interest rates, the demand for loans in the country is increasing. As a result, there is hope that financial growth will take the wind.
Initially, banks were not increasing interest rates on deposits at the same rate as on loans. But now the demand for loans has increased in the market.