Indian Markets Will Rise Due to RBI Cuts and International Flows
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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