Indian stock market in positive territory, overall sentiment remains balanced

Mumbai: The Indian stock markets witnessed a strong rebound last week after six consecutive weeks of decline, supported by favourable global cues, according to analysts.

Sentiment remained buoyant amid optimism surrounding a temporary US–Iran ceasefire, although lingering geopolitical uncertainties capped the pace of gains as the week progressed.

“The rally was further aided by a stable domestic macro backdrop, with broader markets outperforming the benchmarks. Despite elevated volatility marked by sharp mid-week gains and subsequent profit booking, indices trended higher,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

The Nifty and Sensex gained around 6 per cent to close near the week’s highs at 24,050.60 and 77,550.25, respectively.

According to analysts, global developments remained a key influence, with the temporary ceasefire between the US and Iran improving risk appetite, though uncertainty around its sustainability persisted.

Meanwhile, a sharp decline in crude oil prices below the $100 mark eased domestic concerns and triggered a strong rebound across markets.

On the domestic front, the RBI maintained the repo rate at 5.25 per cent and retained a neutral stance, highlighting the need to balance inflation risks with growth support.

The central bank also revised FY26 GDP growth upward to 7.6 per cent while projecting FY27 growth at 6.9 per cent.

Inflation projections were raised to 4.6 per cent for FY27, reflecting risks from elevated energy prices and potential weather-related disruptions.

Market watchers said that overall sentiment remains balanced but cautious, shaped by global cues, crude oil price movements and ongoing foreign investor activity.

Downside appears to be relatively contained, but upside momentum remains constrained, pointing to a recovery that is still tentative and low in conviction, they added.

Economic indicators showed signs of moderation, with the Services PMI easing to 57.5 and the Composite PMI to 57.0 in March.

However, global agencies remained constructive, with the World Bank raising India’s growth outlook, supported by strong domestic demand and structural factors, said analysts.

IANS