Stock Market Today LIVE: The key benchmark indices of the Indian stock market staged a bounce-back, following a rebound in Asian markets after further easing in crude oil prices. The Bank Nifty index is up over 500 points, whereas the Nifty 50 and Sensex are up by around 0.25%.
Asian stocks advanced for the first time in three sessions as oil prices fell on signs of increased supply from the Middle East, while bonds remained in focus ahead of the crucial US inflation reading.
The MSCI Asia Pacific Index rose 0.4% with stocks in Japan and South Korea gaining. The moves came after gains for a key gauge of US semiconductor shares, while President Donald Trump rejected regulations on artificial intelligence.
Crude oil price today
The moderation in oil prices, however, comes against a backdrop of continued uncertainty over the US-Iran conflict and the outlook for regional energy supplies. Signs of a recovery in crude production and improving supply flows have helped push prices lower, but the geopolitical situation remains fluid, leaving energy markets vulnerable to renewed volatility should tensions escalate or negotiations falter.
FII data
Foreign investor flows remain a significant headwind. Persistent foreign selling, alongside elevated US Treasury yields, could continue to limit the durability of any recovery in domestic equities.
The external backdrop is nevertheless somewhat more supportive this morning, with Asian equities trading higher and technology stocks leading gains. The stronger regional tone could provide an initial boost to risk appetite, although domestic markets are likely to remain sensitive to movements in crude oil, global yields and foreign flows.
Indian stock market outlook
For Indian equities, the immediate setup has improved modestly as the sharp decline in crude removes some pressure from the macroeconomic backdrop. Whether that translates into a sustained recovery will depend on the stability of oil prices, the trajectory of global bond yields and whether foreign selling begins to moderate.
— Ponmudi R, CEO at Enrich Money