Mumbai: Indian stock markets bounced back sharply last week after falling for six straight weeks. Both benchmark indices- Nifty and Sensex- rose nearly 6 per cent and closed close to their weekly highs at 24,050.60 and 77,550.25, respectively. This recovery brought some relief to investors after a phase of continuous decline.
Global Cues Lift Sentiment
Positive global developments played a big role in improving market mood. Optimism around a temporary ceasefire between the US and Iran boosted investor confidence. However, uncertainty over how long this peace will last kept gains in check.
At the same time, crude oil prices dropped below the USD 100 mark, easing concerns for India, which depends heavily on oil imports. Lower oil prices helped markets move higher.
Domestic Factors Stay Supportive
On the domestic front, the Reserve Bank of India kept the repo rate unchanged at 5.25 per cent. It maintained a neutral stance, aiming to balance inflation control with economic growth.
The RBI also gave a positive outlook on growth, raising FY26 GDP estimates to 7.6 per cent and projecting FY27 growth at 6.9 percent. This supported overall market sentiment.
Volatility Persists Despite Gains
Markets remained volatile during the week. There were strong gains in the middle of the week, followed by profit booking towards the end.
Experts say that while downside risks look limited for now, the upside is still restricted. This means the recovery is happening, but it is not very strong or convincing yet.
Mixed Economic Signals
Recent economic data showed some moderation. Services PMI slipped to 57.5, and Composite PMI came in at 57.0 in March.
Despite this, global institutions like the World Bank remain positive about India’s growth due to strong domestic demand and long-term structural strength.
Balanced but Cautious
Market sentiment remains balanced but cautious. Investors are closely watching global developments, oil prices, and foreign investor activity.
The market may continue to move in a range unless stronger triggers emerge.
