KRISH POPAT WHY ARE THE MARKETS BOOMING? #01 GDP on the rise The GDP growth for Q1 and Q2 were 7.8% and 7.6% outperforming the estimates which were 7.5% and 6.5% by the RBI. India is one of the fastest growing economies in the world, this increases investors confidence #02 FED cutting interest rates Federal reserve (FED) is the central banking system of the US Cutting down interest rates leads to cheap borrowings and increased investment. India, being the red hot economy emerging market will garner investments for high returns. #03 BJP wins in the three states Rajasthan, Madhya Pradesh, and Chhattisgarh, were the three states where BJP won in the recent elections. Ruling party winning elections does impact the market due to Policy continuity and other factors. #04 US Inflation slowing down US inflation from 6.4% in Jan 2023 decreased to 3.1% in November 2023 A fall in US inflation, signals a calmer global economic scenario as it has a huge influence on the global markets FPI Inflows on #05 #05 the rise The Foreign Portfolio Investors (FPIs) have pumped in about ₹78,903 crore in the Indian financial market in December (upto 26th) which is 3x of that in November. The rise in purchasing activity by FPIs may be linked to expectations of interest rate reductions, the decline in the US dollar and bond yields, alongside India's robust economic growth prospects.
