After 75 years of independence, how far India has progressed in any field, the calculation is going on across the country. Economy is under the scrutiny. But what matters more to investors is how the last week has fared for the global, as well as the Indian economy, and how the coming days might fare.
Concerns about high interest rates, unemployment, declining exports, rising imports, record trade deficit, falling rupee prices remain in the country. Meanwhile, the investment market got some good news from home and abroad last week. Like other countries, the Indian stock market has also risen. One of the reasons for this is a slight head-down in price growth rates in the US and India. Not that the situation is under control. It is clear, however, that price inflation, after reaching record highs, has started to decline as a result of successive interest rate hikes. Although inflation is still quite high, it is not expected to raise its head for now.
In America, the prices of some products including gas, copper, wheat have decreased. Employment increased. 5.28 lakh new jobs were created in July. These data indicate that the central bank, the Federal Reserve, may not raise interest rates as steeply. As a result, the stock market of the country is strengthened. This has affected various markets of the world including India.
In this country too, the rate of price increase in the retail market fell to 6.71 percent in July from 7.01 percent in June. However, it is above the 6% tolerance limit set by the Reserve Bank. But it is expected to decrease even more in the coming days. Especially since the price of the crude oil in the world market it has fallen below $100 per barrel. Which at one time reached 139 dollars. If fuel prices do not rise or come down further, it will be a boon to the Indian economy.
It is believed that the Reserve Bank may also take a slightly softer stance on raising interest rates later. As investors bought shares last week, foreign investment companies returned capital, the index rose. Sensex rose 1075 points to 59,463 in four days. It is now only 2,303 points or 3.73 percent behind its peak of 61,766. If this bullishness of the market is maintained, it may set a record in a few days. The Nifty rose 301 last week to settle at 17,698.
Further fueling the upturn is news of a 12.3% industrial expansion in June. Because it is a positive message for the market. An increase in industrial production means that the economy is improving. Foreign investment companies have already started returning to this country in anticipation of the improvement in the economy. They bought shares worth 22,452 crore rupees in the first two weeks of August. If their investment continues, it is believed that the market will be able to maintain its momentum. On the other hand, the return of equity-oriented funds is increasing as the stock market is strengthening.