Resilient Rally Amid Uncertainty

The Indian markets sustained their upbeat investor sentiment over the past fortnight, driven by multiple factors. A key catalyst has been the growing expectations among analysts that the Reserve Bank of India (RBI) may cut repo rates in its April policy review, considering its liquidity stance and the evolving global dynamics. Additionally, the U.S. Federal Reserve’s decision to maintain its policy rate has sparked fresh discussions on central bank responses worldwide. Experts suggest that the combination of higher inflation and a lower GDP growth forecast in the U.S. could work in favour of emerging markets like India, driving increased capital inflows and bolstering the rupee.