Indian Markets Will Rise Due to RBI Cuts and International Flows
Market expert Ajay Bagga highlights why Indian markets are primed for a boost. With the RBI’s recent rate cuts and favorable global trends, India’s economic resilience shines. Here’s why investors are buzzing!
- RBI’s Strategic Rate Cuts: The RBI slashed the repo rate to 6.25% in February 2025 and 6% in April, adopting an accommodative stance. This boosts liquidity, lowers EMIs, and fuels growth in sectors like MSMEs.
- Global Capital Inflows: A weakening US dollar (index at 102) and rising US debt make India an attractive destination for emerging market flows, despite a ₹10,355 crore FPI exit in April 2025.
- Domestic Strength: With CPI at 3.61% and projected 6.5% GDP growth for 2025-26, consumer-driven sectors and government spending ensure resilience against global tariff concerns.
Key Market Indicators
| Indicator | Value | Impact |
|---|---|---|
| Repo Rate | 6% (April 2025) | Boosts liquidity |
| CPI Inflation | 3.61% | Supports growth |
| US Dollar Index | 102 | Attracts FPI |
With another potential rate cut in June 2025, India’s markets are set to thrive. Stay tuned for more updates!
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