Sensex rallies over 500 points today, up over 7% in December so far; 5 reasons why market is gaining - explained
BSE-listed firms is now near ₹361.3 lakh crore. Also read: Market momentum may continue in 2024; FPI money will continue to pour into India, says Ajit Banerjee Here are the five factors that experts believe have boosted market sentiment: As the US inflation has been cooling of late, market participants are buying stocks aggressively, expecting the US Federal Reserve to start cutting interest rates as early as March next year. "Market pricing now shows a more than 80 per cent chance the Fed is likely to begin cutting rates next March, according to the CME FedWatch tool, with over 150 basis points of easing priced in for all of 2024," reported Reuters.
When interest rates decrease, more money flows into the financial system. This could potentially help companies make more profit which boosts market sentiment. The outlook for the Indian economy is strong.
According to an ANI report, Fitch Ratings expects India to be among the world's fastest-growing countries, with resilient GDP growth of 6.5 per cent in 2024-25. For the current financial year 2023-24, it pegs GDP growth at 6.9 per cent. As Mint reported earlier, economists suggest after a 7.7 per cent expansion in the April to September period this year, the economy is expected to sustain the growth momentum in the coming quarters at a comparable pace.
According to D.K. Srivastava, chief policy adviser at EY, the Indian economy is expected to see a 7 per cent expansion in the January to December period of 2024. If one looks at FY25, the growth is expected to be in the range of at least 6.5-7 per cent, said Srivastava.
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