MUMBAI - HSBC (LON:HSBA) Global Research anticipates the bull market conditions to persist into the first half of 2024, underpinned by substantial foreign institutional investor (FII) inflows observed in November and solid domestic capital contributions. The firm highlighted several key economic stability indicators that are expected to fuel this positive outlook.
Among the factors contributing to this forecast are the consistent value of the rupee, reduced United States bond yields, lowering crude oil prices, and controlled inflation levels. These elements are seen as pivotal in maintaining the upward trajectory of the market.
Looking ahead, the start of 2024 could see a reversal in FII outflows due to these favorable economic circumstances. This trend is anticipated to coincide with expectations of policy continuity following elections.
According to HSBC, a decisive election win for the BJP will ensure clear policy direction is likely to amplify bullish sentiment in the markets. Conversely, an inconclusive election result may lead to temporary market corrections as investors reassess their positions in light of potential policy uncertainty.
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