Indian equity markets concluded a volatile trading week on a strong note, successfully halting a two-week losing streak. This positive momentum was fueled by an improving global sentiment and supportive measures from the Reserve Bank of India (RBI) designed to attract foreign currency inflows. The upcoming week is anticipated to be influenced by a combination of domestic macroeconomic data releases and significant global policy developments.
Developments concerning US-Iran negotiations and their potential impact on crude oil prices and the Strait of Hormuz are expected to continue shaping global risk sentiment. The India VIX, a key indicator of market fear, saw a notable decrease of 6%, settling at 14.72 levels. On Friday, foreign portfolio investors (FIIs) were net sellers of Indian equities, offloading shares worth Rs 1,082 crore. Conversely, domestic institutional investors (DIIs) acted as net buyers, acquiring shares valued at Rs 5,341 crore.
The Indian rupee experienced a significant surge, appreciating to 95.11 against the US dollar on Friday. This appreciation was largely attributed to growing expectations of a US-Iran peace agreement, which led to a sharp decline in crude oil prices and prompted an unwinding of long dollar positions.