Why Indian Market Is Becoming Bullish? from wisepowder's blog
According to the data from NSE, foreign investors have poured over Rs 1.01 lakh crore into the Indian equity markets since the beginning of November.To get more news about WikiFX, you can visit wikifx official website.
A combination of low interest rates in the US and the weak dollar has led to inflows into emerging markets like India.
Low-interest rates mean the returns on US Treasurys are subdued and hence foreign investors prefer Indian markets, where the return could be relatively higher. Driven by the inflow from foreign players, the Indian equity markets have continued to hit new heights.
Besides the foreign investor inflows, the rally is also attributed to the good corporate earnings season and trends from the festive season.
Even the big global firms like Morgan Stanley and Goldman Sachs have turned bullish on India, citing factors such as accommodative monetary policy, government spending, and peaking out of Covid-19 infections.
Pay attention to potential risks
But there are also a lot of factors that could prick the pricey bubble of Indian markets. Inflation is still a bone of contention and could hurt the Indian central banks attempts to keep the rates low. At the same time, the recovery in demand has been slow with the imports and credit growth showing signs of weakness.
As a leading media in the forex industry, WikiFX offers overall information of global forex brokers, and provides educational content to help people become profitable traders. Download and review more than 23,800 brokers on the WikiFX App: bit.ly/wikifxIN
A combination of low interest rates in the US and the weak dollar has led to inflows into emerging markets like India.
Low-interest rates mean the returns on US Treasurys are subdued and hence foreign investors prefer Indian markets, where the return could be relatively higher. Driven by the inflow from foreign players, the Indian equity markets have continued to hit new heights.
Besides the foreign investor inflows, the rally is also attributed to the good corporate earnings season and trends from the festive season.
Even the big global firms like Morgan Stanley and Goldman Sachs have turned bullish on India, citing factors such as accommodative monetary policy, government spending, and peaking out of Covid-19 infections.
Pay attention to potential risks
But there are also a lot of factors that could prick the pricey bubble of Indian markets. Inflation is still a bone of contention and could hurt the Indian central banks attempts to keep the rates low. At the same time, the recovery in demand has been slow with the imports and credit growth showing signs of weakness.
As a leading media in the forex industry, WikiFX offers overall information of global forex brokers, and provides educational content to help people become profitable traders. Download and review more than 23,800 brokers on the WikiFX App: bit.ly/wikifxIN
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