India's Markets Simmer Under Global Heat, PM Modi appeals for Austerity

Global markets stayed buoyant last week, led by strong U.S. earnings, resilient job growth, and sustained AI momentum. The S&P 500 and Nasdaq notched record highs, with earnings growth expectations sharply upgraded to nearly 28% for Q1 marking the strongest pace since late 2021. Energy stocks have emerged as clear leaders in 2026, supported by Brent crude rebounding above $105 amid Middle East tensions.

However, rising oil prices and higher U.S. inflation (3.3%) are reviving concerns over delayed rate cuts, with some risk of further tightening. Asian markets remained mixed, though Korea’s Kospi hit a fresh record.

Indian equities closed the week lower, with Nifty down ~0.6%, pressured by profit booking, FPI outflows, and elevated crude prices. PM Modi’s call for austerity urging reduced fuel use, gold imports, and foreign travel highlights growing macro pressures on India’s external balances. Near term, Nifty is expected to consolidate between 23,800 – 24,400 amid volatile global cues.

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