After’s Wednesday’s rate hike, Equity strategist remains divided on whether the world-beating rally in Indian stocks will continue or will pause for respiration.
All are agreeing for the big focus for investors in next year’s election.
On Wednesday, after the hike, the benchmark S&P BSE Sensex Index slipped 0.2 %. Still, this year the measure has advanced 10 %, holding its place as Asia Pacific’s best performing market and becoming the world’s best major stock market in local currency terms.
“Investors will forget the rate hike and refocus on individual companies and their outlook,” said Kishor Ostwal, managing director at CNI Research Ltd. in a telephone interview. “The fate of general elections next year will be the focus of attention.”
According to Ostwal, India’s stock will increments to a new hike as most investors are short and these quarter earnings are better than aggregate.
In 2 years RBI raised interest rate at the highest. RBI Governor Urjit Patel hinted at possibly more tightening to maintain economic stability amid growing risks from global trade and currency tensions. In the world’s fastest global economy, RBI wants to handle the inflation pressure and shore up the rupee if global currency war breaks it.
Investors are likely to forget this hike soon as earnings growth is improving led not only by the consumer but now industrials as well,” Patel said.
Due by next year, the federal government will decide whether Prime Minister Narendra Modi will extend the business-friendly policies after the votes of 2014. When his party wins as the majority votes from past 3 decades. After his victory, starting economic growth increased. It took a hit after he banned 86 % of the country’s currency in a bid to throw out countless wealth in 2016 that has recently recovered.
Polls showed that Modi’s ruling Bharatiya Janata Party may fall short with the full majority with decreasing their popularity.
“We may see some consolidation coming in as we are getting closer to an election cycle,” said Soumen Chatterjee, head of research at Guinness Securities Ltd. “Markets can take this policy decision as a non-event.”
“Elections brings uncertainty and that is something which markets generally don’t like,” said Guinness’s Chatterjee.
Indian rate hike ‘non-event’ for stocks; focus for investors on next year’s election
After’s Wednesday’s rate hike, Equity strategist remains divided on whether the world-beating rally in Indian stocks will continue or will pause for respiration.
All are agreeing for the big focus for investors in next year’s election.
On Wednesday, after the hike, the benchmark S&P BSE Sensex Index slipped 0.2 %. Still, this year the measure has advanced 10 %, holding its place as Asia Pacific’s best performing market and becoming the world’s best major stock market in local currency terms.
“Investors will forget the rate hike and refocus on individual companies and their outlook,” said Kishor Ostwal, managing director at CNI Research Ltd. in a telephone interview. “The fate of general elections next year will be the focus of attention.”
According to Ostwal, India’s stock will increments to a new hike as most investors are short and these quarter earnings are better than aggregate.
In 2 years RBI raised interest rate at the highest. RBI Governor Urjit Patel hinted at possibly more tightening to maintain economic stability amid growing risks from global trade and currency tensions. In the world’s fastest global economy, RBI wants to handle the inflation pressure and shore up the rupee if global currency war breaks it.
Investors are likely to forget this hike soon as earnings growth is improving led not only by the consumer but now industrials as well,” Patel said.
Due by next year, the federal government will decide whether Prime Minister Narendra Modi will extend the business-friendly policies after the votes of 2014. When his party wins as the majority votes from past 3 decades. After his victory, starting economic growth increased. It took a hit after he banned 86 % of the country’s currency in a bid to throw out countless wealth in 2016 that has recently recovered.
Polls showed that Modi’s ruling Bharatiya Janata Party may fall short with the full majority with decreasing their popularity.
“We may see some consolidation coming in as we are getting closer to an election cycle,” said Soumen Chatterjee, head of research at Guinness Securities Ltd. “Markets can take this policy decision as a non-event.”
“Elections brings uncertainty and that is something which markets generally don’t like,” said Guinness’s Chatterjee.
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