International markets would have an impact on the path of the benchmark indexes moving forward, analysts said on Saturday, even as the Indian stock markets made a slight comeback from the uncertainty brought on by weak global cues last week.
The Bank of Japan’s monetary policy decision, disappointing US non-farm job data, and geopolitical concerns had an impact on all global markets, including India.
Because of the Yen’s sharp increase and the unsatisfactory macroeconomic data that fueled US recession fears, there will be uncertainty around the unwinding of carry trades.
Market observers say that although the carry trade problem seems to have subsided for the time being, the Bank of Japan’s steady hike in interest rates may yet have an effect in the near future. Last week, the Indian market saw widespread buying across all sectors, with the real estate sector experiencing a relief bounce as a result of the return of indexation benefits.
Experts say that even though FIIs have been net sellers in the Indian markets for the past month, the selling pressure from FIIs has been offset by significant inflows from DIIs and retail participants.
As predicted, the RBI did not alter its policy rate.
But generally, there was a touch of caution due to the rather hawkish tone, which included the assumption of an upward revision in the CPI.
Pantomath Capital Advisors claims that the Indian initial public offering (IPO) market has attracted attention from investors across the globe due to its impressive growth and durability.
India emerged as the most active market for initial public offerings (IPOs) in the first half of 2024.
Based on our analysis, we believe that a spike in liquidity events will fuel this trend into the second half of the year. Analysts said that one important factor supporting corporate expansion and boosting investor confidence in India is the country’s strong economic growth.
The next week will see the release of India’s inflation figures, which is predicted to be moderate.
Investors should now concentrate on value equities instead than growth stocks, experts recommended.
