Markets Outlook: Oil, Tariffs, Rate Hikes & FII Selling To Keep Upside In Check

Indian markets are showing some signs of stability as oil prices cool and global markets recover. But several headwinds remain, according to Ambareesh Baliga, Market Analyst. Tariff risks linked to India’s Russian oil purchases, elevated crude prices, rising interest rates, below-average monsoon trends and continued FII selling could keep pressure on equities. He also expects Q2 earnings to take centre stage over the next few weeks, while concerns over the October-December quarter could limit the market reaction even if Q2 results are strong. Ambareesh expects downside pressure to remain, although he does not see markets cracking unless there is major adverse news.