Global relief lifts Indian markets, but FIIs stay cautious
Global relief lifts Indian markets, but FIIs stay cautious
Indian shares rose as relief over a US-Iran ceasefire cooled oil prices and inflation worries, yet foreign investors remained cautious amid global uncertainties.
Mumbai — Indian equity benchmarks surged on relief over a US-Iran ceasefire, with oil prices easing and inflation fears cooling. The Sensex and Nifty posted their strongest single-day gains in years, lifting sentiment across sectors and helping the market cap of BSE-listed companies climb by ₹16.1 lakh crore. In a session defined by optimism sparked by easing geopolitical tensions, traders welcomed the renewed calm on global energy markets and a softer inflation backdrop, which traders hope will sustain risk appetite in coming weeks.
Investors, however, stayed selective as foreign institutional investors (FIIs) remained cautious. The rally was driven by relief over the ceasefire and softer commodity prices, but participants kept a watchful eye on global cues and policy developments. The cautious stance from FIIs suggests that while money is moving back into equities, it is not a carte blanche for a broad, unbridled surge and that traders will be ready to switch gears if macro signals worsen.
Analysts noted that the current uptick reflects a relief-led rebound rather than a fundamental, long-term shift in the market trend. The upside is unlikely to be uniform across sectors, and market breadth could narrow if geopolitical risk re-emerges or if inflation readings surprise to the upside. Still, the cooling oil scenario and easing inflation pressures have improved the macro narrative, giving domestic equities a supportive backdrop as corporate results season approaches.
With oil prices retreating and inflation under check, traders will be watching upcoming data and corporate updates for signs of sustained momentum. The mood in trading rooms remains cautiously optimistic, built on relief from global tensions and the prospect of steadier domestic growth, but investors acknowledge that a resilient rally requires continued positive macro signals and favorable policy cues.
