According to market experts, the markets became more sensitive at the end of the last financial year due to the fear of recession and global banking system upheaval.
According to Vijayakumar, the move of the global market along with India, especially inflation in America and the monetary steps of the central bank there will decide. If there is no reduction in inflation in the US, the Federal Reserve will have to continue raising rates. This will affect the stock markets around the world.
No negative triggers at this time:
He further said that the other aspect of this is that if the inflation rate comes down in America, then the markets around the world will benefit from it. On the other hand, the political trigger for Indian markets at the end of FY24 will also be decisive for the market. At present, no negative trigger is visible at the present time. Let us tell you that during the last financial year i.e. FY23, the BSE Sensex had gained 423.01 points or 0.72%.
Interest rates will have an impact:
Partha Nyati, Founder at Tradingo, said that the global financial situation, inflation and interest rates in the US are going to have a major impact on the first half of 2023-24. The geopolitical environment will also be important.
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Market analysts say that the last financial year has been volatile due to adverse conditions created globally such as the Russia-Ukraine war, high inflation and fears of a global economic recession. In the current financial year, the direction of the stock markets will be determined by the position of the rupee and the US dollar as well as the global oil benchmark Brent crude.