Indian stocks on the verge of a new rally as cash-strapped banks open up

India is on the brink of a fresh rally as banks open on Thursday and India’s stock market is set to benefit from the low-cost financing from private equity firms.

On Wednesday, the Reserve Bank of India (RBI) announced it was extending the deadline for people to start receiving their payments in cash to October 23.

The RBI also said that it would issue a notice to those who had missed out on the deadline to provide their payments by September 20.

Investors have welcomed the RBI’s move, saying it is helping those with cash-crazed bank accounts, who were unable to access the RBI website.

On Thursday, the government’s Economic Survey (ES) said the economy grew by a robust 6.7 per cent in the September quarter.

On an annualised basis, the survey found that the economy shrank by 0.4 per cent and the number of unemployed increased by 8.6 per cent.

The survey also found that India’s manufacturing output rose by 3.3 per cent compared to the same quarter last year.

In terms of gross domestic product (GDP), the survey showed that growth was 3.4 percent in the first quarter of 2019 compared to 1.5 percent in last year’s first quarter.

India’s stock markets have been on a tear since late last year, when Prime Minister Narendra Modi announced the Reserve Banks decision to revive cash payments.

India has seen the country’s stock indexes rise from their low levels in mid-2016 and early 2017.

Since then, the market has continued to rally, and on Thursday, it is set for another rally.

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