Indian Stocks Rebound

Indian stocks closed sharply higher on Monday after five sessions of losses, as lower oil prices supported the rupee and aided foreign inflows on domestic equities. The S&P/BSE Sensex and the NSE Nifty 50 each gained 1%. The US paused strikes against Iran over the weekend and oil prices trimmed their surge, easing the outlook of rupee selling from energy importers and aiding foreign demand in Indian capital markets. TCS gained 1.9% after reporting stronger-than-expected quarterly earnings. Lodha Developers also climbed following a rise in quarterly profit. Meanwhile, Infosys surged 3% with support from a rebound in the US tech sector. In contrast, Bank of Baroda came under pressure after reporting a decline in quarterly earnings.

India’s BSE Sensex rose about 0.8% to 76,668 at the open on Monday, recovering after five consecutive sessions of losses as a sharp decline in global crude oil prices improved investor sentiment after the US and Iran halted strikes over the weekend. Meanwhile, market participants remained cautious ahead of this week’s US Federal Reserve policy meeting, where the central bank is widely expected to keep interest rates unchanged, while watching for signals on the future policy path. Among individual stocks, Tata Consumer Products gained after reporting stronger-than-expected quarterly earnings, while SBI Card advanced on improved asset quality and solid results. Lodha Developers also climbed following a rise in quarterly profit. In contrast, Bank of Baroda came under pressure after reporting a decline in quarterly earnings. Notable gainers included Caliber Mining and Logistics (8.9%), Ratnaveer (8.1%), Dr. Lal PathLabs (6.6%), IDFC First Bank (6.2%), Infosys (3.1%), and Laurus (2.9%).

Indian stocks closed sharply lower for a third session on Friday amid further pressure from tech companies, while the deteriorating macroeconomic backdrop drove foreign funds to limit exposure to Indian assets. The S&P/BSE Sensex dropped 0.4% to 76,060 and the NSE Nifty 50 dropped 0.4% to 23,770, both at their lowest in over one month. Crude oil prices rose sharply for another session following yesterday's Mumbai close as escalating strikes between the US and Iran further tightened energy supply from the Middle East, both in the Red Sea and Persian Gulf. The higher energy costs lift petrol imports for India and pressure the rupee, reducing demand for Indian stocks in foreign markets. HDFC Bank and Axis Bank lost 9.4% and 7.6% on the week, respectively, after posting their June-quarte results. Meanwhile, tech stocks inched up following their sharp losses this week.