After months of disappointment in the Indian stock markets, the market can now see a good performance, because improving global economic conditions, fair valuations, reduction in share selling by foreign investors and softening of crude oil prices are creating a favorable environment for the stock market. The past few months have been challenging for the domestic equity markets, with a slowdown in GDP and earnings growth, continued foreign portfolio investor (FPI) withdrawals and high valuations along with geopolitical tensions in West Asia adding to the weakness in the market.
What will change due to softening of crude and expectation of agreement with America?
Vinod Nair, Head of Research, Geojit Investments Limited, while talking to Amar Ujala.com, said, “Easing of tensions in global economic conditions, sharp decline in crude oil prices to pre-war levels, improving traffic in the Strait of Hormuz, growing expectations regarding a trade agreement between India and America amid progress in talks between America and Iran have boosted the sentiment of domestic investors. However, amid rising inflationary pressure and decline in rural demand, the sentiment of domestic investors has been boosted. “Concerns about inequality have not diminished.”
