Asian stocks rose in lockstep with Wall Street’s record highs, fueled by an AI-led rally and signs the US consumer remains resilient. Japan, South Korea and Australia advanced, lifting the MSCI Asia Pacific Index toward a sixth straight weekly gain. In the US, Nvidia’s six-day surge supported the Nasdaq trade, while strong earnings expectations and upbeat retail sales data helped investors look past risks from oil above $100 and rising inflation pressures.
Indian equities extended losses for a fourth straight session, with Sensex and Nifty falling nearly 2% as elevated Brent prices, a record-weak rupee, and persistent FII selling battered risk sentiment. Brent rose to about $107, the rupee hit a lifetime low near 95.63, and FIIs sold over Rs 8,400 crore. Analysts cite a broader confidence shock tied to US Iran uncertainty.
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India’s share of global market capitalization has fallen under 3%, pressured by a prolonged bearish run and heavy foreign portfolio investor outflows. Even with the slide, the country remains fifth globally with a market cap of about $4.9 trillion. However, Taiwan and South Korea are closing the gap quickly, signaling faster shifts in global investor preference.
Market expert Sameer Dalal says India’s markets face headwinds as crude oil prices lift import costs, unlike the US which can benefit from exports. He cautions that FMCG margins may have already peaked due to higher logistics expenses, and upcoming Q1 earnings could disappoint as input costs rise and economic activity slows.
Indian equities continue to climb, but experts warn the rally may be nearing near-term exhaustion as momentum slows. The broader uptrend is still intact, yet traders are urged to stay cautious ahead of key Nifty resistance around 24,300. Real estate stands out with early turnaround signals after a prolonged downtrend, while future rate-cycle changes could drive catalysts.
Roblox shares fell after it cut bookings guidance, citing safety-related changes and mounting competition risk. Reddit climbed on expectations that AI is boosting advertising growth, alongside a solid revenue outlook. Atlassian also gained momentum after raising revenue forecasts, driven by stronger cloud and AI demand. Markets are now weighing users, ads, enterprise demand, and competitive threats.
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Asia’s trading landscape is splitting sharply: South and Southeast markets are squeezed by rising oil prices tied to conflict, pressuring trade and shares. Meanwhile, North Asia’s tech giants are climbing to record highs, powered by AI enthusiasm. The result is a widening divide as investors increasingly favor future growth themes over near-term geopolitical and energy risks.
Government data shows households have poured far more into shares and mutual funds than into bank deposits over the past decade. Savings in markets have jumped over 15x, while household bank deposits grew much more slowly. The shift suggests banks are not capturing a growing share of household wealth, raising questions about where India’s savings are going next.
Gujarati travellers are holding back on summer plans as geopolitical uncertainty tied to the US-Israel-Iran conflict, along with stock market dips, makes them more cautious. Advance bookings for summer trips have dropped sharply, pushing many to consider alternative destinations. Hotels and event planners are feeling the slowdown, though experts expect it to be temporary for this traditionally buoyant travel community.
FY26 turned out to be India’s worst year for stocks since the pandemic, with foreign investors selling a record amount of Indian shares. Trade tariffs and regional conflicts hit global sentiment, while the rupee declined sharply. Even so, the editorial argues India’s fundamentals stay resilient, and recovery may depend on stabilising energy prices.
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