Domestic markets are witnessing a mild recovery after the recent sharp decline, supported by a pause in Iran-Israel tensions and softer crude prices. However, sentiment remains fragile, with continued FII outflows and higher bond yields highlighting persistent concerns around evolving global macro dynamics. Focus is now on the upcoming US inflation data, which will be key in shaping expectations on Fed policy and global liquidity, especially given resilient US economic data.
In the near term, analysts say markets are likely to remain volatile and range-bound, with investors staying cautious until clearer global cues emerge, even as Q4FY26 earnings were slightly better while the outlook for Q1FY27 remains weak.
