Dollar, crude oil give Nifty bulls a double dose of relief. But for how long?
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Indian stock markets are trying to inch back to life, fueled by a double dose of macro relief: a sliding US dollar and plunging crude oil prices. The past few days have seen a relief rally take hold, with bullish sentiment returning as the dollar index retreats and oil prices drop below $70 a barrel. Sensex is up around 1,000 points in the last two days, but the broader market, which had slipped into bear territory, is rallying even sharper, with the BSE Smallcap index rising 5.6% in three days. The US dollar index has tumbled to 104.2, giving up a significant portion of its gains since September 2024. Simultaneously, the Indian rupee has strengthened, boosting optimism that foreign institutional investor (FII) selling could soon reverse. Brent crude’s sharp 6.5% drop over the past four sessions—its lowest level since December 2021—provides further tailwinds, as India, a major oil importer, stands to benefit from lower energy costs. A dec...
