80k question: Why’s market okay with macro problems?
- Somnath Mukherjee
- Jul 3, 2024, 21:25 IST IST
Investors are cheering good news from the top 10% of the economy. Post-reforms, stock market booms have never waited for broad-based economic growth
It was barely a month ago that people were worrying about election results and its impact on markets. But markets have continued to make all-time highs since then, with Sensex now breaching the unprecedented 80,000 mark. There is a near-constant apprehension about valuations, over-heating etc. But continuing confidence of domestic investors is papering over such nervousness.
The macro backdrop | Recent GDP growth figure came in at 8.2% for FY24, surprising estimates on the upside. While inflation’s a tad sticky, it’s not alarming. Global commodity prices, especially oil, are holding down at moderate levels. Current account came in at a rare surplus level of 0.6% of GDP in the last quarter of FY24. Strong growth in tax revenues has kept post-Covid fiscal consolidation (at a Union Budget level) on track.
The macro backdrop | Recent GDP growth figure came in at 8.2% for FY24, surprising estimates on the upside. While inflation’s a tad sticky, it’s not alarming. Global commodity prices, especially oil, are holding down at moderate levels. Current account came in at a rare surplus level of 0.6% of GDP in the last quarter of FY24. Strong growth in tax revenues has kept post-Covid fiscal consolidation (at a Union Budget level) on track.
