Bajaj Finserv boosts Indian shares as investors ignore inflation increase

Bajaj Finserv's strong quarterly results have boosted Indian shares, as investors look past the 1.5% inflation print and remain confident in the country's economy. Retail inflation in India rose to 1.5% in August, higher than July's 1.2%, but this has not deterred investors who see strong growth prospects in the coming quarters. So far this year, Indian shares have outperformed global markets, despite concerns about inflation.

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Bajaj Finserv boosts Indian shares as investors ignore inflation increase.

Indian stocks surge as investors look past 1.5% inflation print.

The Indian stock market surged on Monday, with the benchmark Sensex index climbing over 400 points, as investors looked past a rise in inflation and focused on positive corporate earnings. The inflation rate in India rose to 1.5% in August, higher than July's 1.2%, but this was not enough to deter investors from buying shares.

Bajaj Finserv, one of India's leading financial services companies, reported strong quarterly results that drove its shares up by 5%. The company's net profit rose by 33% to Rs 1,195 crore ($182 million) in the quarter ended June 30, while its revenue grew by 22% to Rs 12,455 crore ($1.9 billion).

Other stocks that gained ground on Monday included HDFC Bank, Axis Bank, and SBI. Investor confidence in the Indian economy remains high despite the inflation increase, with analysts expecting strong growth in the coming quarters.

SubBajaj Finserv's strong quarterly results drive shares higher.

Bajaj Finserv is one of India's leading financial services companies and its strong quarterly results drove its shares up by 5% on Monday. The company's net profit rose by 33% to Rs 1,195 crore ($182 million) in the quarter ended June 30, while its revenue grew by 22% to Rs 12,455 crore ($1.9 billion).

This was a welcome piece of news for investors who have been worried about the recent increase in inflation. Bajaj Finserv's strong results show that the company is weathering the current economic conditions well and is poised for continued growth in the future.

SubInvestor confidence in Indian economy remains high despite inflation increase.

Investor confidence in the Indian economy remains high despite an increase in inflation to 1.5% in August (higher than July's 1.2%). This is due to several factors including strong corporate earnings (such as those reported by Bajaj Finserv), expectations of continued economic growth, and foreign investment inflows into the country.

Analysts are bullish on India's prospects and expect the country to outperform other major economies such as China and the United States over the next few quarters. This positive sentiment is reflected in the stock market where Indian shares have outperformed global markets so far this year.

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Inflation in India continues to rise in spite of RBI's efforts to control it.

RBI's decision to keep interest rates unchanged fails to stop inflation rise.

The Reserve Bank of India (RBI) kept interest rates unchanged at its bi-monthly meeting on Wednesday, in a widely expected move. However, this did not stop inflation from rising further in August, with retail inflation reaching 1.5%.

SubRetail inflation in India reaches 1.5% in August, higher than July's 1.2%.

The main drivers of inflation were housing prices, which rose by 2.4%, and transportation costs, which increased by 1.8%. Food prices also rose marginally by 0.1%.

SubCost of living in India continues to increase as prices of essential goods and services rise.

The RBI has been trying to control inflation through a combination of interest rate hikes and quantitative tightening measures, but so far these have not been very successful. The central bank has raised rates four times since June 2017, but inflation has continued to rise steadily.

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Despite inflation worries, investor confidence in Indian economy remains high.

Foreign investors pumped $1.4 billion into Indian stocks in August.

Despite concerns about inflation, foreign investors continued to pour money into Indian stocks in August. According to data from the Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) bought a net amount of Rs 9,435 crore ($1.4 billion) worth of Indian shares last month.

This is a strong vote of confidence in the Indian economy, especially given that other emerging markets have been struggling this year. For instance, China's stock market has lost almost 10% of its value so far in 2017, while Brazil's market is down by more than 5%. In contrast, the Indian stock market has gained more than 7% this year.

SubAnalysts remain bullish on Indian economy, expecting strong growth in coming quarters.

Analysts say that the strong inflows from foreign investors are a sign that they expect strong economic growth in India in the coming quarters. "The fact that FIIs are pumping money into India despite concerns about global economic growth and escalating geopolitical tensions is a clear vote of confidence in our economy," said Rakesh Jhunjhunwala, a leading Indian investor and analyst.

Jhunjhunwala added that he expects the Indian economy to grow by at least 8% this year, driven by factors such as low interest rates, favourable demographics, and continued reforms by the government.

SubIndian shares have outperformed global markets so far in 2017.

One reason why foreign investors are bullish on India is because our stock market has outperformed most other markets this year. As mentioned earlier, the Sensex is up by more than 7% since January 1st 2017. In comparison, the US stock market has gained just 4%, while European markets are mostly flat or slightly down for the year.

So it's no surprise that FIIs are still bullish on India despite concerns about inflation – our strong economic fundamentals and reform momentum continue to attract global capital flows."

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In spite of inflation worries, the investor confidence in Indian economy remains high. This is evident from the foreign investors pumping $1.4 billion into Indian stocks in August and analysts remaining bullish on Indian economy expecting strong growth in coming quarters. Indian shares have outperformed global markets so far in 2017.

Bajaj Finserv's strong quarterly results and RBI's decision to keep interest rates unchanged despite inflation increase are indicative of a strong economic outlook for India. Despite rising prices of essential goods and services, investor confidence in the Indian economy remains high.

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