New Delhi, April 18: The Indian stock market is witnessing early signs of recovery as the prolonged selling by foreign institutional investors (FIIs) appears to be slowing down.
Market experts report that during the last three trading sessions of this week, FIIs turned net buyers, which has supported market recovery and boosted investor confidence.
However, when considering the entire week, FIIs still recorded a net outflow of approximately ₹250 crore. This indicates that a consistent influx of strong investments is necessary to confirm a sustainable market improvement.
On the other hand, domestic institutional investors (DIIs) experienced an outflow of around ₹6,300 crore during this period. Despite this, analysts believe that DIIs continue to provide a stable support system for the market and will contribute to its strength in the long run.
This week also saw a strengthening of the Indian rupee, which stood at 93.24, reflecting an increase of about 0.15 percent. The weakening of the dollar index and reduced tensions between the U.S. and Iran have decreased the demand for dollars, providing support for the rupee.
Jatin Trivedi, VP of Research at LKP Securities for commodities and currencies, stated that the positive market sentiment has been bolstered by FII investments and expectations surrounding U.S.-India trade talks, leading to increased capital flow into domestic markets.
Additionally, the recent drop in crude oil prices over the past 48 hours has alleviated pressure on India’s import bill, further strengthening the rupee.
A significant global decline in oil prices occurred after Iran announced that the Strait of Hormuz would be fully open for commercial vessels during the ceasefire. This strait is one of the world’s most crucial oil supply routes.
According to reports, oil prices fell by nearly 10 percent following statements from Iran’s foreign minister after the ceasefire between Israel and Lebanon.
Analysts suggest that while the rupee is currently supported, its future strength will depend on geopolitical developments and the direction of crude oil prices.
Looking ahead, market trends are expected to be heavily influenced by news, although the current atmosphere remains positive. Investors will particularly focus on the outcomes of U.S.-Iran discussions.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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