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India equities rebound as crude eases, earnings hold up, RBI stays steady
The RBI kept the repo rate at 5.25% and signaled a neutral stance, while investors pointed to moderating oil prices and renewed foreign inflows as support.
India’s stock market staged a strong recovery over the past two weeks as investors shifted focus from global uncertainties, including geopolitical risks and inflation concerns, to improving domestic fundamentals, according to LiveMint Markets.
The rally was supported by moderating crude oil prices, resilient Q1FY27 earnings, renewed foreign inflows, a strengthening rupee, and a policy outcome from the Reserve Bank of India, helping restore confidence across sectors and expectations of a more stable macro environment.
The outlet said easier prospects for diplomatic engagement between the US and Iran, along with efforts to stabilize the Strait of Hormuz, reduced fears of prolonged supply disruptions. As a major oil importer, India could see softer crude translate into lower inflation pressure, improved corporate margins, and a steadier external account.
LiveMint Markets also cited the RBI’s Monetary Policy Committee decision to keep the repo rate at 5.25% and maintain a neutral policy stance, largely in line with expectations. It noted that while elevated US bond yields remained a concern for emerging market capital flows, the risks were partly offset by improving macro indicators and policy clarity, with small caps among the strongest performers and leadership from IT, autos and consumer durables, and banks.
Latest closeWTI crude $78.07 ▲3.8%