Falling Oil Prices Lift Indian Markets to Seven-Month Winning Streak
India’s benchmark stock indices ended the week with their third consecutive weekly gain, marking their longest winning streak in seven months. Investor sentiment improved as crude oil prices dropped to levels seen before the Iran conflict, easing concerns over inflation and economic growth. The Nifty 50 and BSE Sensex posted modest weekly gains, although both pared earlier advances due to profit booking ahead of the market holiday.
Markets also received support from Reserve Bank of India Governor Sanjay Malhotra’s comments indicating no immediate interest rate hike. Additional measures, including easier loans against foreign-currency deposits and the government’s decision to remove bond taxes for foreign investors, boosted confidence by encouraging overseas investment inflows.
Among sectors, pharma and healthcare stocks outperformed on expectations of increased demand after reports that the U.S. FDA contacted Indian drugmakers regarding a critical cancer drug. Financial stocks also advanced, while metal shares declined due to weaker global prices. Airline major InterGlobe Aviation emerged as one of the biggest gainers, benefiting from lower oil prices that are expected to reduce operating costs.
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