Mumbai: A slowing GDP growth rate is a major sticking point for the Indian stock markets at this points and a delayed monsoon and sharp rise in oil prices is further weighing on the investors.
Sensex and Nifty have failed to sustain the key levels of 40,000 and 12,000 after breaching them post the conclusion of the general elections, primarily owing to concerns over slowdown.
“All eyes are on the Union Budget. A reformist budget with big plans for growth is what markets are looking for,” Mayuresh Joshi of Angel Broking stressed.
For the market to really move up, it needs a mix of local and global triggers that are supportive, he added.
With the prevailing conditions, all eyes are on the Budget to be tabled on July 5 , to announce measures to revive growth.
Among the key points of concerns for the financial market, analysts noted, were the ongoing trade dispute, spike in global oil prices and shortage of liquidity in the market. Brent crude, the global oil benchmark rose sharply on Thursday after war like situation developed between Iran and the US after Iran shot down a US drone.
US President Donald Trump on Friday said he was in “no hurry” to retaliate. He warned that the “we were cocked and loaded to retaliate last night” but chose otherwise as its was “not proportionate to shooting down an unmanned drone”. (IANS)