Home / Business and Economy / India Stocks Rise Amidst Asian Rally, Oil Prices Cap Gains
India Stocks Rise Amidst Asian Rally, Oil Prices Cap Gains
16 Jul
Summary
- Indian equities rose, mirroring gains in Asian markets on softer US inflation data.
- Oil prices around $85 a barrel limited upside due to supply disruption concerns.
- Foreign investors sold shares, while domestic investors were net buyers.
Indian stock markets concluded Wednesday on a higher note, aligning with a broad uptrend in Asian equities. This positive movement was primarily attributed to US inflation figures that suggested a less aggressive approach from the Federal Reserve regarding interest rate hikes.
However, the upward momentum was tempered by oil prices remaining near $85 a barrel. Recent US actions against Iran contributed to concerns about potential supply disruptions, particularly through the Strait of Hormuz, thus limiting further market advances.
The benchmark NSE Nifty gained 26.5 points to close at 24,078.50, while the BSE Sensex rose by 130.5 points to settle at 77,185.43. Analysts noted that the Nifty ended above key support levels, with the market's fear gauge, India VIX, showing a decline.
Investor sentiment has been cautious due to escalating geopolitical tensions in the Middle East. Despite these global uncertainties, market participants are not showing signs of panic, anticipating that the conflict might not significantly escalate.
Foreign portfolio investors sold Indian equities worth ₹736 crore on Wednesday. Conversely, domestic institutional investors were net buyers, purchasing shares worth ₹705 crore. Overseas investors have been net buyers in July overall.
