In the wake of the upcoming elections and the uncertainty surrounding the prospects of the non-banking financial company (NBFC) sector, the Indian stock market is still struggling to find a solid footing.
However, the oil price saw a fall from $86 to $60 per barrel, and the Rupee managed to claw back from its record low standing of 74 last month.
But even the recovery of the Indian currency and the steep 30 per cent decline in oil prices have not been entirely successful in lifting the market sentiments.
There have been further developments on the positive front with three foreign brokerages upgrading Indian equities from the ‘underweight’ status to ‘neutral’.
The economy witnessed a foreign influx of portfolio investors in the sum of Rs. 4000 crores into equities in November; this is a significant development given the past three months had registered consecutive outflows.
The BSE Sensex too slightly redeemed itself, recording a spike of 3.7 per cent.
While there are improvements in the market, volatility is expected to hover up to the run to the general elections next year. Experts opine that oil prices and the upcoming elections will be amongst the primary factor determining the sway of the market.