Key Points
The outlook for Indian industry is improving due to the clampdown of global commodity prices..
When the domestic economic environment is stable and commodity prices are reducing, it does provide leeway to Indian corporates due to a cut in operation costs..
Although the correlation between the Nifty50 index and Brent crude oil is negative at -0.22, based on the last 10 years data, suggesting a tendency to fall together, the relationship is relatively weak, because the coefficient is less than 0.5...
However, after the initial hiccups, both are diverging, with crude declining and Nifty50 rebounding due to an improvement in the profit outlook of India and a suitable valuation being in consolidation for 1.5 years.. . India heavily relies on importing raw materials, and the cost of local resources is also determined based on global prices..
Because, extended in-equilibrium in the global economy will ultimately affect the Indian stock market..
You might be interested in
Outlook 2024: With no apparent hurdles on horizon, road seems clear for stock investors
25, Dec, 23New Delhi [India], December 25 (ANI): Cumulatively, the past 12 months have been stellar for investors who parked their money in Indian stocks. Though there has been some turbulence, first during the Adani-Hindenburg episode and lately during the initial days of the Israel-Hamas war, the calendar year 2023 gave handsome monetary dividends to stock market […]
ETMarkets Smart Talk: FII sell-offs a tactical move; moderate correction of 3-4% could renew their interes
07, Oct, 23“While the Nifty50 has reached a significant milestone at 20,200, it's not necessarily indicative of a definitive ceiling. Several global factors, such as the stronger-than-expected global growth and the recent decline in global average inflation, suggest that equity valuations are less likely to face immediate pressures.”
India eyes economic gains as China's stimulus fuels surge in global mining demand
16, Dec, 23India Business News: China's sustained stimulus efforts and the industrial recovery in developed nations are set to catalyze a surge in global mining demand throughout 202
India to sustain growth in more durable way: Report
07, Jul, 23India Business News: NEW DELHI: The Indian economy has carried the momentum from FY23 into current fiscal year and high-frequency indicators paint a healthy picture of sta.
Crude oil climbs on tightening supply; IEA demand outlook awaited
14, Apr, 23Brent crude futures climbed 34 cents, or 0.39%, to $86.43 per barrel by 0347 GMT.
Apple's India map provider surges 104% in over 6 months as it rivals Google’s product
16, Oct, 23Shares of MapmyIndia, formally known as CE Info Systems Ltd., have risen about 104% from the end of March, adding around $675 million in market value on demand for its consumer-facing app Mappls. Some analysts and investors are betting on the companys domestic growth opportunity, while others view its price tag as a barrier.
We are in a bull market where 19-20x peak will sustain as long as earnings growth continues: Vinod Karki
25, Jul, 23Equity strategist Vinod Karki of ICICI Securities believes that the market valuation peak will be around 19-20x PE, but as long as earnings growth continues to expand at around 15%, the market will continue to grow. Karki also commented on the agriculture chemicals sector, suggesting that valuations are nearing a peak and growth concerns could cause multiples to peak out.
Indians prioritise survival, put vanity on the backburner
11, Apr, 23Even as global rating firms remain gung-ho on the positive prospects for the Indian economy, the term 'mehengai' finds increasing space in the Indian household discourse. Economists continue to highlight some of the well-documented strides made by the Indian economy in recent years, especially in comparison to other major economies. However, rising prices continue to be a spot of bother in India.
India is not immune to the stagflation that felled its neighbors
07, Mar, 23Not much help is expected from the global economy Financial conditions are tight almost everywhere and demand tepid
Davos 2024: India can become $5 trillion economy much before 2028, says Hardeep Puri
16, Jan, 24Our energy consumption is surging three times faster than the global average, and 25 per cent of the global energy demand growth in the next 20 years will come from India, Puri said.