- Benchmark indices surged over 4% last week, driven by improved investor sentiment and foreign inflows.
- Tariff updates, US GDP data, and oil prices are key global factors influencing market trends.
- FIIs have turned net buyers, aided by a weaker dollar and potential Fed rate cuts.
The Indian stock market witnessed a sharp rebound last week, with the Sensex and Nifty gaining over 4%. This momentum was driven by increased foreign institutional investor (FII) activity, dovish signals from the US Federal Reserve, and expectations of a decline in risk-free rates.
While domestic economic triggers are limited, market participants are closely monitoring global developments. Key factors to watch include tariff-related updates from the US, GDP growth data, and Brent crude price fluctuations.
Stock Markets Poised for Gains as FIIs Return, Global Factors in Focus
With foreign investors showing renewed confidence in Indian equities, the market is witnessing a revival. FIIs have shifted from net sellers to net buyers, infusing significant capital into the market. The expectation of two rate cuts by the US Fed this year has further fueled optimism, as lower interest rates enhance liquidity and risk appetite.
Global macroeconomic indicators will continue to play a crucial role in determining market direction. Tariff-related developments in the US, along with key economic data, may influence foreign investment decisions. Additionally, fluctuations in the rupee-dollar exchange rate and crude oil prices could impact market sentiment.
On the domestic front, the derivatives market is set for the expiry of March contracts, which could add short-term volatility. However, the broader outlook remains positive as India’s economic fundamentals continue to improve, drawing investor interest.
Despite last week’s gains, analysts caution that markets may experience intermittent corrections. Investors are advised to stay vigilant, keeping an eye on external risks and policy changes that could sway global markets.
The Indian stock market appears well-positioned for further growth, backed by improving FII inflows and global tailwinds. While short-term volatility remains, long-term prospects look promising as economic fundamentals strengthen.
“The stock market is filled with individuals who know the price of everything but the value of nothing.” – Philip Fisher
