The markets have seen some new lows in the previous months and the investors feared of a recession. But now there is some respite for the investors as the markets have seen some improvements, though still we are not into a bull market. The markets are still range bound between 4,700 and 5,300 and will take time to some new highs. The new rate hikes by the RBI have aligned with the markets. Though everyone was expecting the markets to go down, but the festive season helped the markets to stay on the positive side and stay well above 4,700 marks.
Inflation has been increasing for many months and there have been many rate hikes to keep it under control, though still the government has not been able to keep it under control and the investors have had to suffer. The experts are now saying that this is the last possible rate hike and there will not be any further rate hike for coming months. This takes out the uncertainty out of the markets as far as the interest rates are concerned and brings some positivity in the markets.
If this happens and the uncertainty regarding the interest rates has bottomed out then the markets may break out on the upside and it can bring good amount of investor confidence in the markets. In the next three to six months the experts are expecting the markets to break out and enter the bull markets, but the issues regarding Europe and some of the domestic issues should be tackled properly to help the markets improve.
Bell The Bull says: The news that this is the final interest rate hike, should be able to bring good amount of investor confidence