macroeconomic uncertainty

Foreign portfolio investors have withdrawn over Rs 2 lakh crore from Indian equities in 2026, with May seeing further outflows of Rs 14,231 crore. Persistent global macroeconomic uncertainties, including inflation and interest rate concerns, are driving this trend, making developed market debt more attractive. Despite overall selling, some selective interest remains in specific sectors and growth-oriented mid and small-cap stocks.

LTM boosted fresher hiring by 40% and deployed over 1,500 AI agents in FY26 to enhance productivity. Simultaneously, the company increased reliance on overseas subcontractors, particularly in the US and Europe, while its permanent employee count grew overall, driven by India.

Indian markets brace for volatility this week, driven by US-Iran tensions and crude oil price swings. Investors will also scrutinize crucial inflation data from India and the US for interest rate clues. Key corporate earnings are also on the radar, alongside foreign investor activity, shaping market sentiment.

Persistent foreign fund outflows and the rupee sliding to record lows have further dampened sentiment, prompting investors to stay cautious and intensify selling across equity markets.

One of the key triggers behind the market decline was renewed uncertainty surrounding the US-Iran conflict. US President Donald Trump said the ceasefire with Iran was “on life support” after Tehran rejected Washington’s latest proposal aimed at ending the conflict. Trump described Iran’s demands as “garbage.”

Uday Kotak, founder of Kotak Mahindra Bank, urged India to reduce its reliance on foreign capital and cultivate a robust domestic pool of long-term risk capital for true self-reliance. He emphasized that companies should prioritize building businesses with a three-to-five-year vision over short-term stock price fluctuations, advocating for stronger domestic private equity and venture capital ecosystems.

Gold price prediction today: Any upside in gold and silver prices may face resistance at higher levels, says Vedika Narvekar, Research Analyst - Commodities & Currencies, Anand Rathi Shares and Stock Brokers.

Economists believe India’s foreign-exchange reserves are still sufficiently strong to shield the rupee from the oil price shock triggered by the Iran conflict, with the country’s reserve buffers remaining far healthier than the levels seen during the 2013 taper tantrum.

India has significantly increased import duties on gold and silver to 15% from 6%, aiming to curb rising imports and conserve foreign exchange amid the West Asia crisis. This move follows Prime Minister Modi's appeal for austerity and aims to ease pressure on the rupee and the country's balance of payments.

For RBI the situation is clear: The resilience of the global economy, already inflicted with trade tensions, is being tested by the conflict in West Asia. The biggest takeaway from the RBI bulletin is that India’s domestic supply chains may come under risk from a prolonged war scenario, though strong macroeconomic fundamentals provide a buffer.

The RBI cautioned about potential second-round effects from the West Asia conflict, where supply shocks could morph into demand pressures. Persistent geopolitical tensions and rising energy costs are creating global macroeconomic uncertainty, necessitating continuous assessment of inflation and growth risks.

The Indian rupee is facing significant pressure, weakening against the US dollar due to soaring crude oil prices driven by Middle East geopolitical tensions and persistent foreign fund outflows. Despite India's robust economic growth, the currency's slide continues as the Reserve Bank of India intervenes to curb volatility rather than target a specific exchange rate.

The sell-off was widespread, extending beyond large-cap stocks to the broader market. The Nifty Smallcap 100 index was down 0.5%, while the Nifty Midcap 100 index fell more than 1%.

Precious metals gold and silver are poised for continued pressure this week, influenced by US-Iran peace talks, central bank decisions, and key economic data. Analysts anticipate volatility as investors weigh geopolitical shifts, inflation concerns, and a strong US dollar. Domestic gold and silver futures saw significant drops, reflecting global market trends.

India’s gold imports hit a record $71.98 billion in 2025-26, rising over 24% from $58 billion a year earlier. This was largely due to skyrocketing global gold prices, which have bumped up the value of imported gold.

Infosys faces investor pressure, with its market value dropping significantly despite strong March quarter results. A subdued FY27 revenue growth forecast and industry-wide shifts towards cost efficiency and AI-driven productivity are impacting its outlook. While AI presents new opportunities, it also pressures core business margins.

Brokerage views on Infosys remain mixed, with analysts balancing near-term challenges against the company’s long-term positioning. They have expressed a measured outlook on Infosys.

NITI Aayog's report highlights the Middle East conflict's potential impact on India's trade and economy, risking the current account deficit and exchange rate. Instability also slows India-GCC FTA talks, hindering market access. Despite global uncertainty, merchandise trade remains steady, with services showing strong performance.

Foreign investors are continuing their significant sell-off in Indian stocks, withdrawing over Rs 48,000 crore in early April. This follows a record Rs 1.17 lakh crore exit in March, driven by global uncertainty and escalating West Asian tensions. Analysts cite rising crude oil prices and a weaker rupee as key concerns, with some Asian markets appearing more attractive for now.

Today is Akshaya Tritiya, an auspicious day in the Hindu calendars, believed to bring lasting prosperity and good fortune. Buying gold on this day is considered auspicious. Experts believe that returns on gold over the last few years reinforce its role as a long-term wealth preserver.

Amidst global turbulence, Shaktikanta Das emphasized India's energy security and self-reliance, highlighting its role as a stable anchor. He advised the corporate sector to build resilience and diversify. Das asserted that India's prudent policy responses and strategic autonomy have enabled it to emerge stronger from various crises.

India’s balanced geopolitical approach has helped mitigate risks. Strong relationships across key global blocs have enabled continued access to energy and trade routes, positioning India relatively well in a fragmented global environment.

India's real estate sector experienced a robust start to 2026, with private equity investment soaring to USD 1.2 billion in Q1, a 66% year-on-year increase. Office assets dominated, attracting 41% of investments, primarily in Gurugram and Pune. Domestic investors led the charge, signaling renewed confidence despite global economic uncertainties.