Indian equity indices ended on a strong note following a favorable shift in global cues and renewed optimism surrounding a potential India-US trade agreement, as per experts.
Despite the potential for heightened geopolitical tensions between India and Pakistan to escalate into a military conflict, the Indian equity markets are unlikely to see a significant negative impact, according to a recent report by JM Financial.
Indian equity benchmarks opened with gains on Friday with global cues remain broadly positive, the uncertainty on the domestic front capped gains for Indian indices due to skirmishes on the India-Pakistan border.
Indian equity markets started the Tuesday session on a positive note, supported by strong inflows from foreign portfolio investors (FPIs) and domestic institutional investors (DIIs).
Indian equity benchmarks, Sensex and Nifty, ended in negative territory after seven session gains, perhaps due to the diplomatic actions against Pakistan by the government following the dastardly terror attacks in Pahalgam.
While the Indian economy is relatively insulated from a slowdown in the United States, the stock markets of both countries show a strong correlation, according to a report by investment bank and financial services firm Goldman Sachs.
According to RBI data, forex reserves have increased cumulatively by USD 20.1 billion over the past three weeks and by about USD 6.6 billion in the latest reporting week. Experts believe the declines in the last few weeks were caused by foreign investors' shaken confidence in Indian equity m
The panic in the Indian equity markets is expected to continue despite low volatility in the past few months of trading, said Nuvama in its recent report.