Market Outlook: FPI Flows, Oil & Rupee Emerge As Key Triggers For Equities

Indian markets remain in a wait-and-watch phase as investors track key triggers for the next move. Ajay Bagga, Sr. Market Veteran, highlights three crucial indicators: foreign portfolio investor (FPI) flows, global oil prices and the rupee. Earnings have been encouraging, with sales growth outperforming profit growth, but higher input costs are pressuring margins. Domestic cyclicals, financials, infrastructure and power are performing better, while oil-dependent sectors remain under pressure. IT stocks have recovered in July, although earnings need to support valuations. Ajay Bagga also discusses the impact of FCNR flows on rupee stability and explains why oil prices and FPI flows could remain critical for Indian equities.