The Indian economy is at the point of entering its strongest growth phase. The nifty expected market will touch 11,500 in 2018. Now Indian economy is handling strongest phase of growth where stocks, bonds, and commodities come together. The wide based index had crossed 10,000 marks for the first time on July 2017.The stock market is the pillar of growth and now stock markets are driven by low price increases, productivity, and the upsurge in financial savings.
According to Edelweiss Investment Research, India’s strong consumption and exports facilities are boosting economic growth in the country. Trade is the important factor for market basically Trade is something which is a key driver for India’s growth engine. The report added synchronous global growth is likely to boost international trade as well as Indian exports. Economic growth motivates companies to invest, in order to meet future demand. Higher investment chances boost the scope for future economic growth. And investment can create a beneficial cycle of economic growth. High economic growth indicates to increased profitability for firms and it allowing more spending on research and development. Sustained economic growth is the main reason which increases confidence and encourages firms to take risks and innovate.
“A comparison of Nifty’s earning yield versus the 10-year government bond yield shows that equities are still attractive as compared to debt instruments and we should expect the shift in the allocation of funds from debt to equity to continue,” the report said.
India’s strong economic position will help the country to maintain good relationships with other countries. Other hands it will help to remove unemployment, poverty and Economic growth also plays a vital role in plummeting debt to GDP ratios.