Indian Markets Rebound on Global Cues, Earnings Support....
Broader indices mirrored the uptrend with the BSE MidCap and SmallCap indices gaining nearly a percent. Volatility edged higher as the India VIX rose to 17.55.
Sector-wise, realty, pharma, and auto outperformed, while consumer durables, private banks, and FMCG stocks lagged the broader Nifty.
Macro Snapshot – India...
India’s infrastructure output slowed sharply to 0.5% in April, down from 4.6% in March, indicating softening activity across key sectors such as cement, steel, and electricity.
Meanwhile, rural and agricultural inflation cooled slightly, with CPI-AL and CPI-RL both rising just 1 point over the previous month. This reflects mild easing in rural price pressures, though concerns around consumption demand persist.
Currency & Commodities:
The rupee was range-bound. Gold futures rose 0.86% to ₹95,655 amid safe-haven demand, while Brent crude advanced over 1% to $66.17 per barrel.
Wall Street Rattled: Inflation Worries Meet Yield Surge...
A day after analysts warned that the U.S. budget bill could do little to control inflation or long-term debt growth, Wall Street cracked under pressure. The Dow tanked over 800 points on Wednesday as Treasury yields surged and investor confidence took a hit.
The 30-year yield spiked to 5.09%, its highest in years, reflecting deepening concerns about the U.S. fiscal path. A weak 20-year bond auction underscored waning appetite for government debt just as Washington inches closer to passing a bipartisan spending package. Despite hopes for economic stability, market watchers fear the bill may aggravate inflation risks and balloon the deficit even further.
Adding to the turbulence were hawkish remarks from Federal Reserve officials, who reiterated their caution on rate cuts and highlighted tariff-driven inflation risks. This narrative, already brewing on Tuesday, turned into a full-blown sell-off by Wednesday.
Geopolitical jitters—including reports of possible Israeli strikes on Iranian nuclear facilities—further spooked markets and sent oil prices higher, adding to inflationary headwinds.
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