Mint Quick Edit | Stock market recovery: Are bulls stirring?

It’s almost as if bulls have begun to stir again. Stock indices in India have seen five straight sessions of gains. The BSE Sensex closed 1.1% higher at 79,408.5 on Monday, a 9%-odd recovery from its recent low, although it’s still around 7.2% below its late-September peak. 

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Thank foreign investors who have pumped in more than ₹12,500 crore since the start of last week. One factor may be the dollar’s weakness in the wake of global trade and economic uncertainty. This has made emerging markets like India more attractive for global investors. 

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The rupee’s dollar value has held firm lately, and if this lasts, they can expect better value preservation. The Indian economy has also had good news, with inflation having cooled to a level below the central bank’s target, which has set the stage for growth-favouring monetary easing. While corporate earnings have been mixed, some of the better performances have been notable. 

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Still, the path ahead could turn bumpy. With global trade in a tizzy, India’s economy could get hurt. Of course, an India-US trade deal, if struck, would mitigate that risk. To this end, what US Vice-President J.D. Vance’s ongoing India visit achieves will be under watch.