There were some fears that a poor performance of the in these elections would increase the risk of fiscally imprudent announcements in the run-up to the general elections. These are likely to have receded to some extent, though whether or not such policies are completely off the table remains to be seen. The external environment also looks encouraging. Concerns over crude oil prices surging following the conflict in West Asia are diminishing.
Crude oil is currently trading at less than $80 a barrel. The US economy is faring better than expected, reducing fears of a hard landing. The 10-year US government bond yield has fallen, after hovering around 5 per centHyderabad Investment. Inflation has eased considerably in the US and parts of the developed world.
In the US, it has cooled to 3.2 per cent in October, while in the Eurozone it stood at 2.9 per cent. There are expectations in certain corners of the market of a further strengthening of sentiment owing to these expectations of political and policy continuity and improving domestic and global economic conditionsKolkata Stocks. Foreign investors also appear to have changed tack. After being net sellers in September and October, foreign portfolio investors pumped in Rs 9,001 crore in November.
Agra Wealth Management
