“US striking trade deals with many countries is slowly removing concerns surrounding tariff wars. Even though global trade has been impacted this year and global growth will remain subdued at around 2.8% equity markets are slowly discounting recovery in trade and growth in 2026. This optimism explains the resilience and uptrend in global equity markets now. In the mother market US, good corporate earnings are providing the fundamental support to the market.
Good Q1 numbers from Infosys can provide support to the weak IT index. But there is no room for undue optimism in the IT segment.
Regarding institutional activity, FIIs have turned consistent sellers in the cash market even while continuing to invest through the primary market route. The principal reason for FII selling is the high valuations in India and relatively cheaper valuations in other markets”
