The Indian Rupee (INR) is making strides in the financial landscape, driven by a weakened US Dollar (USD) and a steady 7.6% growth in India’s second-quarter Gross Domestic Product (GDP). Analysts anticipate the Reserve Bank of India (RBI) to maintain interest rates during its upcoming policy meeting, considering the positive economic momentum and potential inflation risks.
On Friday, India’s NIFTY 50 achieved a historic peak, propelled by the optimistic economic expansion in the September quarter. The nation’s second-quarter Gross Domestic Product surged by 7.6%, establishing India as the world’s fastest-growing major economy, with manufacturing and government expenditure playing pivotal roles. Prime Minister Narendra Modi emphasised that the positive GDP figures underscore the resilience and robustness of the Indian economy amidst global challenges.
Political stability from state election results contributes to investor confidence, with Prime Minister Narendra Modi’s Bharatiya Janata Party expected to form governments in three of the five states. Furthermore, the International Monetary Fund (IMF) projects a 7% growth for India in the ongoing financial year.
Looking forward, the S&P Global India Services PMI for November and the RBI interest rate decision will be crucial market indicators. Meanwhile, technical analysis of the USD/INR pair suggests a bullish outlook, though the potential downside remains. As global economic conditions evolve, India’s resilience and growth become focal points for both domestic and international investors.
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