Indian equity markets ended the session in positive territory, finding strength in cooling US inflation data that diminished expectations of aggressive interest rate hikes. Both the Nifty and Sensex recorded gains, reflecting a broader sense of optimism across major Asian indices.
Despite the upbeat sentiment, global headwinds persist. Crude oil prices hovering near the $85 per barrel mark are fueling concerns over supply chain disruptions, effectively capping the total potential upside for local stocks.
Market participants remain wary of ongoing geopolitical instability in the Middle East, which continues to cast a shadow over investor confidence. This caution is reflected in recent trading patterns, characterized by a tug-of-war between institutional players.
Data reveals a divergence in strategy: foreign portfolio investors (FPIs) have shifted toward a selling stance, while domestic institutional investors (DIIs) continue to provide support through consistent buying, acting as a buffer against volatility.
