Why FED rate Hike will Not Affect much Our market?

Why FED rate Hike will Not Affect much Our market?

Indian Market is the most expensive emerging market and at the same time it is the most favorite emerging markets as well.

If we look at the momentum of growth right now, there are four points based on market will ride upside:.

Mansoon: The first one is the monsoon, definitely a very good monsoon so you know that is a big tick.

 

Seventh Pay Commission: The second is the implementation of the Seventh Pay Commission which has finally happened and we believe based on our numbers it will be another $50 billion of money that is going to be put in the hands of almost 20 million people which includes the state PSUs, the central PSUs, state government employees, central government employees and the defence. That is of course a lot of people and that historically has led to massive consumption across the country, across two-wheelers, across FMCG products and so forth.

 

GST: The third element which I think is also important is the GST which has got passed and of course now we await the implementation of the GST which hopefully will start to happen early next year.

 

RBI Governer: The forth element is the fact that the new RBI governor has started off his tenure with a positive note by cutting rates and hopefully we will see more of those to come as inflation gets stemmed

 

So we have four internal growth drivers and we expect the markets will remain buoyant in spite of a Fed rate hike.

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