Equity & Indian Market Developments

• Indian equities witnessed a volatile correction during the week, with Nifty 50 declining 0.72% and Sensex falling 0.85%, driven by profit-booking, MSCI rebalancing-related flows, and geopolitical uncertainty.
• Broader markets showed resilience, with Nifty Next 50 gaining 1.85%, Midcap 100 rising 0.54%, and  Small cap 100 advancing 1.02%.
• India VIX declined nearly 10% to 16.19, indicating easing volatility despite market correction.  

Global Market Developments

• Global markets remained broadly positive, led by technology and AI-related stocks, with the Nasdaq gaining 2.4%, MSCI Emerging Markets up 3.9%, and Nikkei surging 4.7% during the week.
• US equity indices touched fresh record highs as strong technology earnings offset concerns over elevated interest rates.
• European markets remained mixed, with Germany's DAX and France's CAC posting modest gains.
• Global bond yields softened, reflecting expectations of monetary easing and moderating inflation pressures.

Fixed Income & Debt Market

• Indian bond markets strengthened during the week, supported by a sharp decline in crude oil prices and expectations of easing inflationary pressures.
• The 10-year benchmark G-Sec yield declined by 8 bps to 7.01%, indicating renewed demand for government securities.
• Corporate bond yields also eased across maturities, reflecting improving liquidity and softer interest rate expectations.

Commodity Updates

Gold

• Gold gained 0.6% WoW, supported by safe-haven demand amid geopolitical uncertainty and expectations of future monetary easing.

Silver

• Silver remained largely stable, declining marginally by 0.3%, while maintaining strong long-term performance.

Crude Oil

• Crude oil witnessed a sharp correction, with Brent crude falling 11.6% and NYMEX crude declining 9.7%, on expectations of improved supply conditions and a possible easing of geopolitical tensions.

Copper

• Industrial metals remained supported by infrastructure spending, energy transition investments, and resilient global manufacturing demand, providing a constructive outlook for copper.

Macro  Economic Updates

• India's trade deficit widened to USD 28.4 billion in April 2026, as imports grew faster than exports.
• India's net household financial savings improved to 7.0% of GNDI in FY25, up from 5.8% in FY24, while gross domestic savings rose to 34.2%.
• The Quad nations (India, US, Japan and Australia) announced plans to mobilise up to USD 20 billion to strengthen critical mineral supply chains.
• The Union Cabinet approved the ₹25,000 crore Sarthak-PDS scheme aimed at modernising India's public distribution system through technology-driven reforms.

India's forex reserves remained comfortable at approximately USD 681 billion, providing a strong buffer against external volatility.

Best Regards

Alpha Research

Disclaimer: This report is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instrument. The information is based on publicly available sources believed to be reliable, but accuracy and completeness are not guaranteed. Views expressed are subject to change without notice. Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.