Nifty on August 30 reversed almost all its losses that were witnessed since the beginning of last week, by making a big upmove in one single day – the last trading session of the month.
Expectations of strong Q1 GDP Data
The expectations of strong double-digit growth in GDP for the June FY23 quarter with the opening of full economic activity and strong domestic demand could be supporting factors for the rally.
One factor that could sway foreign investors is the Reserve Bank of India’s (RBI) rate hikes, which may be lower than the Fed’s.
Economists expect the RBI’s next hikes to be lower than the past two 50-basis-point increases. This means that the interest rate differential between India and the US may narrow.
Even though a hawkish Fed is normally regarded negative for equity markets, history tells us that market returns following the rate tightening are good. A Deutsche Bank study of 13 rate hike cycles shows S&P delivering 7.7 per cent average returns in the year following the hike. Since rate hikes happen in the context of economic recovery, the consequent corporate earnings growth justify resilient markets.
FPIs turning buyers after relentless selling for long.
NAV Managment and MSCI Rejig as we had a Monthly closing.
Gann and Astro Analysis
Gann 9 Year Cycle and Astro Mercury Square Jupiter HELIO generally Leads to Top or Bottom Formation.