Global Markets Recover Amidst Volatility and New Policies
Global markets, including India's Nifty and Sensex, recovered strongly, influenced by the Bank of Japan's dovish stance on interest rates and domestic investments.
On the backdrop of a tussle-filled start to the week in the global markets, including India’s Nifty and Sensex among others, the global markets made a strong recovery. This development is underlined by the Bank of Japan’s unexpected dovish view on interest rates. The global panic triggered by the week’s developments was brought to a halt. Specifically, institutions invested heavily in the Indian markets, buying ₹3,801.21 crore worth of stocks while foreign institutional investors were selling shares worth ₹3,314.76. This marked a unique scenario in the volatile and uncertain markets of India, suggesting a strong confidence by domestic investors on the support systems that are in place in the Indian financial system.
The trend including a mix of short-covering instruments has however resulted in a new equilibrium calling in the landscape of the global market shifts that will foreseeably still be experienced due to the volatility being expected in debts and other markets across the globe. Indian scenarios are even more uncertain as developments in New Delhi pull and push grassroots political developments in India. An example is the newly states determination to adjust its prices on farm gear on account of the easier GST reported last week, an example reported in mid-2017. The strong buying mix was likely hinting at the strategies behind the investments though not much is reported or suggested online about the matter. What are your views?
