NSE Nifty is back to above 8100 - Edelweiss

NSE Nifty is back to above 8100 and the Indian markets have recovered from recent lows.

It was the underwhelming performance of BJP in the by-elections and jitters over global uncertainties (geopolitical tensions, FOMC policy & Scottish vote) that dragged the Nifty below 8000 earlier this week. But, with falling global commodity prices (especially oil), stable rupee, status quo on rates at FOMC meeting, steady flows (FII as well as MF) and benign outlook on domestic inflation; the feel-good sentiment in the markets is back.

The Government and RBI are working hard to mitigate the fallout on India from potential global shocks as they prepare the ground for a gradual upswing in growth. While CPI remains high, stage is set for a slow move lower in the coming months. As a result, the RBI is likely to meet its January 2015 target of 8% CPI.

But, the central bank remains on guard as recovery in domestic growth could prevent it from attaining its next CPI goal of 6% by January 2016. Earnings growth needs to catch up with market rally and an uneven global recovery might cause a dent on Indian exports.

Source : Equity Bulls

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