Valuations look attractive now! FY24 kicks off on bright note despite mixed economic outlook

Despite mixed economic development, the Indian stock market witnessed a 4.5% rally in April, which is a positive change compared to the first quarter of 2023. The RBI’s pause in rate hike policy and below-expected Q4 results are likely to play a crucial role in the future structure of the stock market. The reduction in government bond yield is expected to lead to an ease in stock market volatility. However, the high inflation rate is a concern, and a further downgrade in earnings may prove to be the biggest risk for the market