Mumbai, April 12 (IANS). Indian stock markets managed to close positive last week after six consecutive weeks of decline. The reason for this was support from global markets. This information was given by the analyst.
The reason for the improvement in market sentiment is the two-week temporary ceasefire between America and Iran.
“A stable base of the domestic economy further strengthened the rally, with broader markets outperforming the benchmarks. Despite sharp mid-week gains and subsequent profit booking, indices remained on a bullish note last week,” said Ajit Mishra, Senior Vice President – Research, Religare Broking Ltd..
Nifty and Sensex gained around 6 per cent each and closed near week’s highs at 24,050.60 and 77,550.25 respectively.
According to analysts, global events remained a major factor last week, with the temporary ceasefire between the US and Iran improving risk appetite, although uncertainty remained.
On the other hand, a sharp fall in crude oil prices below $100 eased domestic concerns and supported the rally in the markets.
On the domestic front, the RBI kept the repo rate intact at 5.25 per cent and adopted a neutral stance, stressing the need to balance inflation risks with supporting growth.
The central bank has revised the GDP growth rate for FY 2026 to 7.6 percent, while the growth rate for FY 2027 is estimated at 6.9 percent.
Given the risks posed by higher energy prices and potential weather-related disruptions, the central bank has raised its inflation forecast for fiscal year 2027 to 4.6 percent.
Market analysts say the overall market sentiment remains balanced but cautious due to global cues, fluctuations in crude oil prices and activism by foreign investors.
He says the downside appears to be relatively limited, but the upside momentum remains limited, pointing to an uncertain and weak economic recovery.
Economic indicators showed signs of softening, with the services PMI falling to 57.5 and the composite PMI falling to 57.0 in March.
However, analysts say global agencies remain positive, with the World Bank raising India’s growth outlook supported by strong domestic demand and structural factors.
–IANS
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