The market in the short term primarily gets influenced by either facts or noise. The facts for obvious reasons act as a stronger indicator of the sustainability of a trend. Thus, it becomes important to understand what it is that is driving the market.
The following are some of the points that are been discussed far and wide in the market, let’s look at them individually ~
1. Economic Slowdown in the USA and Europe.
There have been a lot of talks about the de-coupling of India from the West. The opinion is that India will continue to witness growth despite the underperformance of its Western peers. But if we look through history the GDP growth rate of India and the USA have been fairly in line with each other. Depicting that any downward movement in the USA economy will have its trickle-down impact on India too.
Agencies
2.But is the Recession in the USA truly bad for the Indian Market?
Holistically the markets move in cycles and it has the tendency to be forward-looking. Therefore, both the good and the bad news gets discounted before it has truly occurred. The news that the West could go into recession is no longer ‘NEWS’. It has been fairly discounted by the market like it had discounted previous major events.
