BSE’s market capitalization to $3.99 trillion on Wednesday, well past the government’s nominal gross domestic product (GDP) forecast of $3.62 trillion for the current fiscal (FY24).
Indian stock market on Wednesday achieved a milestone, touching $4 trillion in market capitalisation (m-cap) for the first time ever. This coincided with the NSE barometer Nifty50 reclaiming the psychological mark of 20,000 for the first time since September.
At a time when the global economy is facing the twin problem of high inflation and slowing growth, with even the world’s growth engine China not showing a sign of recovery, India has taken the centerstage.
The optimism on Dalal Street has its roots in the way India is uniquely placed among global economies. At a time when the global economy is facing the twin problem of high inflation and slowing growth, with even the world’s growth engine China not showing a sign of recovery, India has taken the centerstage. Many global agencies have upped FY24 GDP forecast for India and several global brokerages retained India ‘overweight’ in their model portfolios despite strong gains.
There is a lot of gambling happening in the market now in low grade stocks. These should be avoided. Investors should buy quality stocks which are fairly priced, and wait patiently. There is value in largecap banking, IT and autos for patient investors. A big move in the market is likely after the state election results are known. Perhaps the exit polls tomorrow evening may provide some clues.
