New Delhi, March 8
India’s inflation fell to 4.31 per cent in January from 5.22 per cent, approaching the RBI’s 4 per cent target after four months above 5 per cent and this trend reinforces the case for potential rate cuts, with the repo rate at 6.25 per cent, a new report showed on Saturday.
The observed market trajectory suggests a cautious sentiment among investors, potentially influenced by macroeconomic conditions, sector-specific developments, and global financial market trends, according to the Motilal Oswal Mutual Fund report.
The Nifty 500 Index declined by 7.88 per cent in February, reflecting contractions across multiple sectors. Factor-based strategies reflected broader market movement, while fixed-income instruments, including Nifty 5 year Benchmark G-Sec (+0.53 per cent), exhibited relative stability.
Globally, developed markets displayed mixed movements, where Switzerland (+3.47 per cent) and United Kingdom (+3.08 per cent) registered gains, while Japan (-1.38 per cent) showed a contraction, the report mentioned.
The US CPI inflation stood at 3 per cent, reflecting marginal increase from 2.90 per cent in the prior month.
Another HSBC report mentioned that India's long-term outlook remains strong and the investment cycle is projected to be on a medium-term uptrend supported by government investment in infrastructure and manufacturing, pickup in private investments, and a recovery in the real estate cycle.