Business

Foreign investors are exiting Indian stocks, with outflows reaching Rs 60,847 crore in April, following a massive Rs 1,17,775 crore sell-off in March. This trend signals sustained weakness in overseas investor sentiment, as global capital shifts towards Asian economies benefiting from the AI investment boom, particularly South Korea and Taiwan.

Global oil prices surged to a four-year high amid escalating US-Iran tensions and fears of a Strait of Hormuz closure, impacting gasoline prices and broader economies. Analysts warn of a potential global recession due to supply disruptions, with shortages already affecting various goods. Experts predict further price hikes until the strait reopens.

India’s leather and footwear industry faces a 40-60% surge in input costs due to the Middle East crisis, impacting petroleum-based materials and imports. Industry representatives are urging the government for import duty exemptions on raw materials and machinery to mitigate these rising expenses and strengthen domestic manufacturing.

Markets brace for a crucial week as investors await state election results, with potential impacts on sentiment. Developments in the West Asia conflict and their influence on crude oil prices remain a significant concern for India’s import-dependent economy. Key economic data and Q4 earnings will also shape market movements.

Dalal Street concluded the holiday-shortened week with gains, as the combined market valuation of India’s top 10 firms surged by Rs 2.20 lakh crore, led by Reliance Industries. Despite a volatile trading environment and mixed global cues, investor sentiment remained resilient, with the BSE Sensex rising 0.32%.

Pakistan’s economy faces sustained pressure with double-digit inflation likely to persist due to surging global oil prices amid the Middle East crisis. Rising energy costs and regional instability are projected to slow GDP growth and widen the current account deficit, impacting the stock market and currency.