India’s stock markets opened the week on firmer footing, recovering slightly after last week’s steep losses. The Nifty 50 jumped about 0.43%, and the BSE Sensex rose roughly 0.39%, with energy sector names fueling much of the uplift. Strong fundamentals around oil and gas stocks, combined with favorable brokerage sentiment, underpinned the advance.
The prior week’s nearly 2.7% decline had rattled markets, triggered by U.S. visa fee increases for H-1B workers and tariffs on pharmaceuticals that heightened capital outflows. As a result, sentiment was fragile entering this week. All eyes now turn to the Reserve Bank of India’s policy announcement: the market consensus is for a rate hold, though some analysts are flagging potential for a cut given the soft growth profiles. Energy and oil & gas shares led sectoral gains, while the FMCG space lagged. Among individual movers, Oil India drew attention with a 2.2% jump following a natural gas discovery in its offshore blocks.
This modest rebound reveals two important dynamics: first, investors remain tethered to the energy complex as a lever for sentiment recovery; second, the looming RBI decision acts as a pivotal anchor. If the central bank surprises with a cut, markets may take stronger direction. Until then, gains may stay tempered and sensitive to global cues.
From a risk lens, the previous week’s heavy foreign outflows and tariff uncertainty show how external shocks can quickly unsettle local markets. The recovery in energy names could sustain momentum, but breadth matters. If gains remain narrow and defensive, the optimism may prove fragile. Watching RBI commentary, capital flows, and sector rotation will be key in judging whether this rebound deepens or fades.
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