New Delhi — Investor sentiment in Indian equity markets this week is expected to be shaped by developments in US–Iran negotiations, trends in global crude oil prices, and commentary emerging from ongoing Q4 FY26 earnings, according to market analysts.
Improving global cues, relatively softer crude prices, and stabilising capital flows have been lending support to the recent market recovery. However, analysts caution that sustained buying interest will be essential to confirm a durable uptrend, even as easing tensions in West Asia provide a supportive backdrop.
Experts believe downside risks are currently limited, while upside momentum is gradually building. This suggests the market may be transitioning from a recovery phase to a more stable structure—though still influenced by external factors such as geopolitical developments and commodity prices.
Markets ended the previous truncated week on a strong note, extending gains for a second straight week amid improving global sentiment. Optimism around a possible US–Iran peace agreement, coupled with steady domestic fundamentals, helped lift investor confidence.
Benchmark indices Nifty 50 and BSE Sensex rose over 1 per cent each, closing at 24,353 and 78,493 respectively. While volatility persisted through the week, the broader markets outperformed frontline indices and maintained an upward bias.
A temporary easing of shipping disruptions in the Strait of Hormuz led to some correction in Brent crude prices, which dipped toward $86 before stabilising around the $92–93 range—offering some relief to markets sensitive to energy costs.
Foreign institutional investors (FIIs) showed early signs of stabilisation, turning net buyers in the final three sessions. However, for the week as a whole, flows remained slightly negative at around ₹250 crore, keeping investors watchful for sustained inflows to confirm a sentiment shift.
Meanwhile, domestic institutional investors (DIIs), who had been supporting the market, turned net sellers in the latter part of the week, booking profits at higher levels. Weekly outflows from DIIs stood at approximately ₹6,300 crore.
From a technical standpoint, the Nifty is currently consolidating within the 24,100–24,400 range, with immediate resistance near 24,400 and support around 24,000. A decisive breakout above resistance could push the index toward the 24,800–25,000 zone.
Similarly, the Bank Nifty faces a key resistance band between 56,800 and 57,000. A sustained move above this range may trigger further upside toward 57,500–58,000 levels.
Market participants suggest maintaining a portfolio bias toward fundamentally strong large-cap stocks, while selectively exploring opportunities in the broader market.
On the sectoral front, energy and metal & mining stocks are expected to remain relatively strong, while other sectors may see participation on a rotational basis.
On the macroeconomic calendar, key data points to watch include India’s infrastructure output for March, due on April 20, followed by Manufacturing, Services, and Composite PMI data for April on April 23—offering further clarity on the economy’s momentum.
With inputs from IANS