On March 14, the Indian markets are seeing a boom for the fifth consecutive day. Sectors like banking, IT are giving maximum support to the market. At present, around 2 pm, the Sensex is seen trading at a level of 56,223.01 with an increase of 672.71 points or 1.21 percent. On the other hand, Nifty is seen trading at the level of 16,795.75 with a gain of 165 points or 0.99 percent. In the last 5 trading sessions, Sensex and Nifty have seen gains of 5.6 and 5.1 per cent respectively.
Market sentiment has got a boost due to the ruling Bharatiya Janata Party winning elections in 3 more states including Uttar Pradesh. Let us take a look at the key reasons why the Indian market is witnessing a boom despite the prevailing tensions in Eastern Europe.
RBI will continue to support growth
Deputy Governor Michael Patra said on Friday that the Reserve Bank of India may review its growth and inflation projections in its policy meet to be held on April 8 as the world economy is reeling under the ongoing conflict between Russia and Ukraine. It is lying The rise in crude oil prices due to this crisis has increased the pressure of inflation all over the world. He further said that it is expected that the RBI will stick to its policy of supporting growth in its upcoming policy meet.
Despite the increase in CPI, WPI, the focus will remain on growth
The government will release the country’s CPI figures today at 5.30 pm. It is expected that the rate of retail inflation will remain high. The reason for this would be attributed to supply-related problems. In such a situation, the RBI will stick to its policy of supporting growth. According to a Bloomberg survey, the CPI may see an increase of 6 per cent in February on a year-on-year basis, which is at the upper end of the RBI’s permissible limit. Let us tell you that the WPI figures have come today. In the month of February, the WPI has increased from 12.96 per cent in January to 13.11 per cent.
Will keep an eye on the world’s big central banks
The eyes of investors will also be on all the big central banks of the world. Which will present its monetary policy this week. The US Fed will announce its policy on Wednesday, while the Bank of England will issue its policy on Thursday and the Bank of Japan on Friday.
BJP’s electoral victory
In the recently concluded elections of 5 states, BJP has emerged as the winner in 4 states. Market experts believe that this has given the central government a mandate to continue with its economic policies and economic reforms. However, these election victories will not add much to the BJP’s strength in the Rajya Sabha as Uttar Pradesh’s lead has been rendered ineffective by losses in Andhra Pradesh and Rajasthan.
Valuation after correction is good
Market analysts say valuations have turned better than before due to the recent correction in the market. Apart from this, rising crude oil prices will not have any major impact on the earnings of the consuming stocks. If crude oil prices remain at their current high levels for some limited time, then it will not see much adverse effect.
FEB WPI DATA: Government suffered a setback on the inflation front, wholesale inflation rose from 12.96% to 13.11% in February
Kotak Institutional Equities The risk-reward ratio of Banks, Diversified Financial, Capital Goods, Real Estate and Specialty Chemicals looks good at the moment, while valuations of most of the growth stocks are looking rich.
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