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Indian Market Surges on Earnings & Oil!
4 Aug
Summary
- Indian market shows strong start driven by positive Q1 earnings.
- Easing crude oil prices contribute to the upward market momentum.
- Investors await RBI policy meeting for further market direction.
The Indian market began the week with significant upward momentum, and sentiment is expected to remain positive. This trend is primarily supported by encouraging first-quarter corporate earnings and a notable easing in crude oil prices.
Investors are closely monitoring the Reserve Bank of India's (RBI) monetary policy meeting for indications on the market's direction. Geopolitical developments, specifically the US-Iran conflict, along with the ongoing earnings season, are also key areas of focus.
Technically, the market index has shown a rebound after approximately two months of consolidation, achieving a decent recovery despite prevailing subdued market sentiment. The index has now rallied to its crucial resistance level at the 200-day moving average (200DMA).
Market fear, as measured by India VIX, saw a slight increase of 1.5%, closing at 11.92. In terms of investment flows, foreign portfolio investors were net buyers of shares worth Rs 922 crore on Friday. Domestic institutional investors also exhibited strong buying, with net purchases amounting to Rs 1,571 crore.
The Indian rupee, however, ended the day largely unchanged. It retreated from a three-week high due to increased dollar demand from importers and state-run banks, which offset the positive impact of falling oil prices.
