Stock Market Update: Indian shares struggled to find direction on Thursday as investors analysed the Federal Reserve’s decision to slow rate increases, but with a caveat. Losses were limited by the ongoing decline in oil prices.
Stock Market Update: Nifty and Sensex
Prior to the release of the Fed’s most recent meeting minutes on Wednesday, the Nifty and Sensex both fell by approximately 1%. 35 of the Nifty 50’s members increased, and 11 of the 13 key sectoral indices had gains.
The minutes showed that Fed policymakers were still concerned about limiting the rate of price increases that threatened to accelerate faster than expected. However, they also included a warning against rate cuts that markets have priced in for the end of the year.
Stock Market Update: Oil prices slid again
On concerns about global economy and an increase of COVID-19 cases in China, oil prices continued to decline Tuesday, bringing the decline over the previous two sessions to 9.4%. On Thursday, oil prices rose again, although they are still below $79 per barrel.
Lower crude prices benefit oil-importing nations like India, where petroleum makes up the majority of the nation’s import expenditure.
Indian Financial Services
After the Indian shadow lender reported a deceleration in loan growth and assets under management in the third quarter, Bajaj Finance experienced an almost 6% increase among individual stocks.
After the central bank removed restrictions placed on the business last year that forbade it from employing outside services for loan recovery, Mahindra & Mahindra Financial Services saw a 2% increase in value.
India’s FY24 growth to dip to 5.5% from 6.8% in FY23
According to an HSBC economist on Thursday, India’s economy will expand by 5.5% in the upcoming fiscal year, which is slightly less than the predicted potential rate of 6%. This is because the country’s growth momentum is gradually slowing. The Indian economy expanded by 8.7% in the fiscal year that ended in March 2022, and 6.8% growth is predicted for the current fiscal year. A professional forecasters’ survey conducted by the Reserve Bank of India and published in December estimated growth to reach 6% in 2023–2024.
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