On Thursday, Indian shares struggled to build on early gains due to volatility in global equity markets brought on by concerns about rising interest rates and the rise in crude oil prices.
“India has still outperformed the international markets notwithstanding the slump. Samrat Dasgupta, CEO of Esquire Capital Investment Advisors, noted that there are other new concerns that are arising, such as rising petroleum costs and currency depreciation.
Global equities markets have been under pressure since the Federal Reserve adopted a hawkish stance earlier in the month due to rising U.S. Treasury yields and the dollar on concerns that interest rates will stay higher for longer.
The third-largest importer in the world, India, would suffer as a result of the 3% overnight increase in crude prices. India is also suffering from lower-than-expected monsoon rainfall, which raises inflation risk.
Mid-caps, small-caps, and domestically focused stocks all had gains of 0.7% and 0.1%, respectively.
“With the exception of information technology, corporate performance this season are anticipated to be good. Esquire’s Dasgupta said, “It appears to be a buy on dips market.
The public sector banks increased 0.9%, while metals rose 0.6% and information technology stocks dropped 0.8% among sectoral indices.
Oil India, a state-run exploration company, increased by 3% as a result of the rise in oil prices, but ICICI Lombard, an insurer, fell by 2% as a result of receiving a show cause cum demand notice from India’s good and services tax department, which demanded 17.29 billion rupees.