Lower Crude, Global Stability to Fuel Market Growth in New Samvat
ANMI President Kamlesh Shroff predicts strong market growth in the new Samvat driven by lower crude prices and global stability.
India's equity markets are poised for a strong performance in the new Samvat year, bolstered by robust macroeconomic fundamentals and a projected economic growth rate of over 7 per cent. This optimistic outlook was shared by Kamlesh Shroff, the National President of the Association of NSE Members of India (ANMI), during the auspicious occasion of Muhurat trading and Deepawali at the National Stock Exchange (NSE).
The Crude Oil Catalyst
According to Shroff, one of the most significant tailwinds for domestic corporate growth will be the cooling of crude oil prices. He emphasized that lower crude costs are a key positive driver for Indian equities, as they can lead to a stronger rupee. This currency stability, in turn, is expected to make the domestic market more attractive, potentially coaxing Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) to return to India.
Global Stability and the US Election Impact
Beyond domestic factors, the global geopolitical landscape is expected to provide much-needed clarity. Shroff pointed toward the conclusion of the US elections as a turning point that could reduce market volatility and ease international tensions.
"Another factor is the US elections, which have already shown clarity, so geopolitical tensions should now ease. From that perspective, businesses will definitely perform much better than they did in the last Samvat," Shroff stated.
The Power of the Domestic Investor
The ANMI President highlighted a significant shift in market dynamics over the last two years. While foreign investors remained net sellers, the Indian market found a sturdy foundation in its own citizens. Shroff noted that retail investors and Domestic Institutional Investors (DIIs), including Mutual Funds, have been the primary pillars of support, actively buying and stabilizing the market.
Looking Ahead: A Dual Engine of Growth
While the domestic surge has kept the markets resilient, the next phase of growth could be accelerated by a return of foreign capital. Shroff expressed that the combination of continued domestic investment and a revival in FII and FPI participation would be "great news" for the overall health of the Indian financial markets.
With a growth story intact at a 7%+ rate, the outlook for the new Samvat remains bullish, promising a prosperous period for market participants across the board.