Nifty 50 vs GDP of India: Why experts see more rally in Indian stock market — explained with 5 crucial reasons

livemint.com:

Nifty 50 vs GDP of India: The key benchmark indices of the Indian stock market surged to a new high after India's Q3 GDP growth saw an impressive growth rate of 8.4% driven by robust manufacturing, highlighting the inherent strength and potential of our economy. However, the domestic equities got some support from the US Fed rate cut buzz as well after the easing of US inflation data that triggered profit booking in the currency market and the US dollar index came below the 104 level. According to stock market experts, Nifty 50 or Sensex or any other index of the Indian stock market grows two to two and a half times the GDP growth registered by the national economy.

So, the robust GDP of India in the first three quarters of the current fiscal and a strong outlook in the fourth quarter are expected to power bulls' sentiment in the medium to long term. They advised investors to maintain the buy-on-dips strategy on every big dip in the market. They went on to add that the high interest rate regime has peaked and now the market is waiting for an announcement of a timeline for interest rate cut.

This announcement may begin from the upcoming US Fed meeting as the easing US dollar and US inflation have already triggered buzz for the US Fed rate cut. The central banks across the globe are expected to follow the shoot once the US Fed declares a timeline for the interest rate cut. They advised stock market investors to look at auto, banking, PSU, and debt-free company stocks to add in one's portfolio as leaders of these segment stocks are expected to deliver whopping returns in the long-term.