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Below the Perspective on the Markets by Mr. Jyoti Prakash, Managing Partner. Equity and PMS at AlphaaMoney 

Global headwinds intensified this week for Indian markets, with the U.S. imposing a 25% tariff and additional penalties on Russian oil imports, amplifying uncertainty. Gold prices were stable near $3,350/oz, while equity valuations remain elevated. Large caps dropped 1.2%, dragged by Adani Enterprise, Kotak, and Wipro, though Varun Beverages and Bosch offered some resilience. Mid and small caps fared worse, declining 1.9% and 3.0% respectively, led by losses in MRPL, Indus Tower, and several NBFCs.

Foreign investors have turned net sellers for ten straight days, driving the rupee to its weakest month since 2022, even as domestic investors provide steady support. The Q1 earnings season disappointed, leading to EPS downgrades for FY26—negative surprises punished more than positive ones rewarded. On a brighter note, Indian bonds have outperformed with the 10-Yr G-sec yield vis-à-vis 10-Yr US Treasury Yield gap narrowing to a 20-year low. Attention now shifts to the upcoming MPC meeting, hoping for supportive policy action.

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