Market Revival: Is the Rally Sustainable?

The market has quickly rebounded from its recent downturn, with the BSE market capitalisation surging by ₹16.6 lakh crore since the lows of the last fortnight. Factors that had been causing concern are now subsiding. There is also growing optimism around the possibility of interest rate cuts by the US Federal Reserve. Expectations for a so-called soft landing have also brightened up after the recent benign macro-economic data. And even though the geopolitical tension is still at an elevated level, it is not as bad as it appeared last fortnight.