Indian stock market closed higher for the day on Friday and for the week aided by positive global cues but on lower than normal volumes suggesting lower participation by FPIs who have been sellers relentlessly in Indian markets. According to stock market experts, the US GDP contracted in Q1 and is expected to slow to almost zero by the second half of the year, indicating signs of economic distress. Recent data releases from Japan, Britain, Eurozone and the United States showed that factory activities remained muted in June across all the regions.
Giving his views on the market wrap last week, Rahul Shah, Co-Head of Research at Equitymaster said, “The pullback in the Indian stock market this week seems more like a relief rally than a full-fledged recovery. Global macros continue to remain challenging and may continue to act as a drag on Indian stocks as well. However, with valuations coming off from their highs, the risk reward from a 2 to 3-year perspective is definitely looking much better for Indian stocks. This is a good time to start accumulating fundamentally strong stocks as long as one is not paying too much premium for quality and stability.”