Indian Equities Extend Seven-Week Slide Amid Macro Headwinds
Indian markets continued their seven-week slide due to various macroeconomic headwinds. Crude oil prices remained high, with Brent crude staying above $105 per barrel and WTI crude above $90 per barrel, amid geopolitical uncertainty and concerns over global oil supplies.
The ongoing rise in oil prices eases pressure on the import bill, inflation expectations, the rupee, and corporate input costs. However, it also adds to the decline of Indian equities. The global bond market continues to tighten financial conditions, with the U.S. 10-year Treasury yield moving above 5.10% during the week.
The sell-off was exacerbated by foreign institutional investors' significant selling, particularly on September 24 and 25. Domestic institutional investors provided a counterweight through strong purchases, limiting the market's decline.