After the decrease in the Inflation Sensex crossed 32,000 for the first time

Sensex Crossed 32000

The major Sensex on the Indian stock market surged over 200 points on Thursday and created a new history. While the sensitive index of the Bombay Stock Exchange crossed the figure of 32,000, the major index Nifty 50 on the National Stock Exchange was also close to crossing the record level of 9,900 with a good 60-point gain in the morning trade.

Stock market analysts believe that in the market this fast has been seen by the Reserve Bank of India on the expectation of declining interest rates. It is noteworthy that the data on retail inflation, which came on Wednesday, has also recorded a record decline, which has led to a steep rise in the market.

Retail inflation at 1.54 percent in June. Earlier, in May, the Central Government received great relief from the inflation data, when the inflation data dropped from 2.99 per cent in April to 2.18 per cent.

In June, the central government received relief for the second consecutive month (0.81 was down in May) on the inflation front. In June this year, the Central Government has seen a decline of 0.64 points in retail inflation data.

According to these inflation figures released by the CSO, the government has received great relief in June figures. During May, the Consumer Price Index (CPI) retail inflation was reduced to 2.18 per cent. During April, retail inflation was at 2.99 per cent.

Expectation of cut in August

 Economic analysts are expected to have strong hopes of cuts in key policy rates in monetary review in August. This expectation is that retail inflation figures in May and June are tied after falling to 1.57 percent in the last decade. State Bank of India's financial research branch has said that the Reserve Bank cannot ignore the rate cut in the August policy review.

Inflation will fall below 2%

If inflation remains favorable for a long time then the rate cut will be stronger and stronger. Domestic brokerage firm Kotak Securities had said that the retail inflation figure in June will fall below 2%. This figure will remain at 4% by March 2018, which is the medium term target of the Reserve Bank.