India’s stock market rally to cool next year

Relaxed stance: A pedestrian walking past the Bombay Stock Exchange in Mumbai. Ultra-easy monetary policy from the RBI has been the primary domestic driver of India’s stock market rally. — AFP

BENGALURU: India’s liquidity-driven stock market rally is expected to cool next year as global and domestic monetary policy starts to tighten, according to a Reuters poll of analysts who expect corporate earnings to rise further.

Despite slumps during two damaging waves of the Covid-19 pandemic, the benchmark BSE Sensex Index has surged nearly 120% from a record low of 25,638.9 hit in late March last year, when the country’s first lockdown started.