Foreign institutional investors have resumed investing in Indian equities, driven by easing US inflation, a weakening dollar, and India’s structural growth story. Attractive risk premiums, improving macro stability, and liquidity-rich markets support inflows. However, global uncertainties and weak earnings remain key risks to sustained momentum in FII participation.

Global equity markets have surged, fueled by eased trade tensions and a shift towards bilateral agreements. India s markets reflect improving macro fundamentals, including rebounding forex reserves and increased banking liquidity. Government capex revival and renewed FII inflows further bolster resilience. While consumption slowdown and geopolitical tensions pose challenges, sectors like auto and capital goods outperform.

Moody’s downgraded the U.S. government’s credit rating comes after similar actions from other rating agencies, highlights growing concerns about long-term fiscal stability in the U.S.

Despite early warnings, tariffs under Trump haven t yet caused major inflation, but hidden costs are rising. Delayed impacts, reduced consumer confidence, and economic unpredictability suggest deeper consequences ahead.

Bitcoin surged past $106,000, driven by Moody’s US credit downgrade, rising institutional adoption, and regulatory developments. JPMorgan enabling Bitcoin purchases and optimism around the GENIUS Act added momentum. Analysts highlight $107,500 as key resistance. Altcoins also gained, with Chainlink, Solana, and Avalanche leading the rally.

Belrise Industries IPO is launching soon. The IPO price is fixed at Rs 85-90 per share. The IPO has a grey market premium of 14.44%. Anand Rathi and Choice Broking suggest subscribing to the IPO. The company manufactures auto components. The IPO reserves shares for QIBs, NIIs, and retail investors. Axis Capital and SBI Capital Markets are managing the IPO.

The U.S. dollar is weakening due to trade tensions, fiscal concerns, and hedging shifts, despite economic resilience. Moody’s downgrade and global asset rebalancing heighten market volatility and investor caution.

Japan s Nikkei share average ended flat on Tuesday, as support from a pause in the yen s rally lifted automakers and exporters, while investor sentiment remained cautious following U.S. sovereign downgrade by Moody s last week.

Moody s downgrade of the US credit rating has sparked concerns for Indian IT stocks, heavily reliant on US revenue. While the sector experienced a recent surge, driven by factors like tariff pauses and strong earnings, the downgrade triggered a market correction. Analysts advise caution, suggesting investors monitor stop losses and focus on companies with diversified client bases and AI capabilities.

Vikas Khemani of Carnelian Asset Management remains optimistic about Indian markets, citing a strong domestic growth story and the resolution of major global uncertainties. While acknowledging potential short-term volatility from unforeseen news, he highlights the positive impact of increased FII flows and overall market activity.