The IMF recently revised Indian economy’s growth forecast upward to 6.8% from 6.5% projected in its January forecast. The fund also revised India’s FY24 growth outlook upward to 7.8%, higher than the government’s projection of 7.6%. Much awaited results of general election in India to be declared on 4th June, 2024. Most of the political and market analysts see a political continuity indicating policy perpetuation and stable government. FII inflow will rise after the results if it comes in favour of the ruling party.
Some of the events that can boost the Indian economy as well as fresh buying in Dalal street
- Many senior political and market analysts predicted a results of general election 2024 in India in favour of the ruling party
- RBI has declared a record break dividend of ~2.11 lac crores to the government of India
- USA has imposed high tariffs on many Chinese products which will lead to opening up of new opportunities for Indian companies and exporters
- Russian president has agreed for the ceasefire in Ukraine leading to the easing of supply shocks
- Indian footprint in Chabahar will open up many trading opportunities in middle-east and europe and a great strategic move to counter china-backed Gwadar port in Pakistan
Domestic factors pushing the Indian economy to the new arena
- Increasing retail participation in the equity market
- Tighter SEBI regulation assuring the healthy playfield
- Rupee has appreciated against US Dollar in a very healthy manner in recent days
- India bond yields slipped for fifth straight weeks
- IMD sees a normal monsoon resulting into easing food prices and controlled core inflation which in turn leads to the possibilities of lowering the benchmark rates by RBI
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