By Samir Al Khoury,
India is considered the third largest economy in Asia after China and Japan in terms of gross domestic product, which currently records about 3.5 trillion US dollars.
Recent Indian economic data shows that the Indian economy is truly resilient as:
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Both the manufacturing and services PMIs rose, recording growth of 59.1 points and 61.2 points, respectively, in March, which are higher percentages than previous readings.
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The industrial production index rose on an annual basis in February, recording a growth of 5.7%, which is higher than the previous reading (4.1%).
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The trade balance index rose in March, recording a deficit of $15.60 billion, which was higher than the previous reading (-18.71B) and its highest percentage in 11 months.
The CPI fell on an annual basis in India a week ago, recording 4.85% for the month of March, which is lower than expectations (4.91%) and the previous reading (5.09%), but still far from the target rate of 4% by the Reserve Bank of India.
As for Indian stocks, the Nifty 50 index rose by about 8% from the bottom of January 24 this year, which recorded 21,137 points, to the peak that it recorded on April 10, 22,775 points. The index is currently hovering near the 22,000 point level. The GOLDEN CROSS crossover between the 50-day moving average in blue at 22,169 points and the 200-day moving average in yellow at 20,640 points remains in place, indicating upward momentum for the Nifty 50 index.
Although Indian stocks recorded record levels in addition to high valuations of about 20 times, it seems that the upward trend for Indian stocks will prevail in the next stage, especially with the expectations of continued foreign investment flows into the Indian markets.
According to JP Morgan Chase, investment flows in India may reach $100 billion in the coming years.
It is worth noting that the Indian Stock Exchange surpassed the Hong Kong Stock Exchange in terms of market capitalization during this year to become ranked fourth globally.
India is preparing for the largest parliamentary elections in the world starting today and lasting for 6 weeks.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
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