Indian equity markets witnessed a positive start on Thursday, with the Sensex and Nifty recovering after three consecutive sessions of decline. The rally was largely driven by banking and financial stocks after Indian banks received a significant liquidity boost through the RBI’s foreign-currency deposit and borrowing schemes.
Private and public-sector banks were among the major gainers, while broader market sentiment also improved. Small-cap and mid-cap stocks participated in the recovery, indicating wider buying interest.
However, investors remain cautious as high crude oil prices and geopolitical tensions involving the US and Iran continue to pose risks. Rising energy prices could increase inflationary pressures and impact India’s import bill.
The market’s near-term direction is likely to depend on global developments, crude oil movement, foreign fund flows and the progress of the Middle East conflict.
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