India: Markets Rattled by Kashmir Attack and Global Uncertainty
Indian equities snapped a seven-day winning streak as tensions in Kashmir escalated and investors locked in profits.
Key Highlights:
- Nifty 50 Index fell 0.73% to close at 24,069.20.
- All 13 major sectors ended in the red.
- The small-cap index dropped 2.6%, and mid-caps were down 2.0%.
What Triggered the Dip?
- A deadly militant attack in Kashmir led to fears of diplomatic escalation.
- Indian Army Chief General Upendra Dwivedi visited the region, underscoring the gravity of the situation.
- Market sentiment turned risk-off amid geopolitical uncertainty and global trade worries.
Currency and Flows:
- The Indian rupee recovered from a session low of ₹85.66 to settle near ₹85.25 per dollar, showing resilience.
- Foreign equity inflows totaled $464.4 million on April 23, providing some support.
Looking Ahead: A recent Reuters poll warns of a dimming economic outlook for India. Concerns include potential impacts from U.S. tariffs and weakening business sentiment.
Sources:
Reuters: India economic outlook dims further as US tariffs dent business sentiment
Reuters: Indian benchmarks retreat as Kashmir attack fuels geopolitical concerns
Reuters: Rupee drops; attempt to move past 85/USD blocked by Kashmir attack jitters
United States: Markets Rally on Tariff Hopes and Tech Boost
Wall Street ended the week on a high note, lifted by signs of a possible easing in U.S.-China trade tensions and a blockbuster earnings report from Alphabet.
Key Highlights:
- S&P 500 jumped 2.0% on April 25, powered by post-market optimism following Alphabet’s strong earnings report.
- The U.S. dollar held steady at $1.1350 per euro and ¥143 per dollar, calming after recent swings.
- 10-year Treasury yield remained elevated at 4.3168%, indicating ongoing caution about monetary policy direction.
What’s Driving the Gains?
- Hints of a softer U.S. stance on China tariffs sparked hope for a trade détente.
- Alphabet’s earnings surprise injected confidence into tech stocks and broader markets.
- Despite rhetoric, investors seemed to look past fresh tariff threats, focusing instead on earnings and fundamentals.
Policy Watch:
- Analysts are actively evaluating the Fed’s liquidity tools—including repo operations, the discount window, and potential Treasury buybacks.
- While no action is expected right now, contingency planning is underway should markets face deeper dislocation.
Corporate Spotlight:
- Spirit Airlines gained approval to list on the NYSE American, with trading set for April 29—a notable step in its post-bankruptcy revival.
Sources:
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