On Friday, the Nifty 50 index in India reached a new high as confidence about the outlook for interest rates globally increased due to the September quarter’s faster-than-expected economic growth.
Leading by growth in manufacturing, the Indian economy grew by 7.6% in the September quarter, above both the Reserve Bank of India’s estimate of 6.5% and the 6.8% prediction in a Reuters poll of experts.
Pramod Gubbi, the founder of Marcellus Investment Management, stated that “India’s growth outlook remains positive, with various capex initiatives of the government likely to trigger consumption at the bottom of the pyramid.”
The shift in capital flows into riskier assets like developing stocks, particularly those in India, has been made easier by the belief that the U.S. interest rate cycle is nearing its top, according to Gubbi.
November marked the greatest month for India’s Nifty and Sensex in 2023, thanks in part to the return on foreign portfolio investor (FPI) inflows.
November saw the FPIs end a two-month selling skid by adding equities valued at $1.1 billion, or 90 billion rupees.
Following consumer expenditure statistics that indicated cooling demand and improved the rate outlook, Wall Street market indices surged overnight, with the Dow Jones Industrial Average recording its best month since October 2022.