Markets recover, but is the relief rally here to stay? Experts weigh in

Market experts remain cautious despite a recovery in equities during the trading session, warning that weak market breadth, a falling rupee and global tensions continue to cloud investor sentiment.

Speaking on the market rebound, Abhishek Basumallick of Shree Rama Managers said the recovery in benchmark indices did not reflect broader market strength. He pointed out that nearly 370 stocks in the Nifty 500 index remained in the red, suggesting investors are still nervous. According to him, uncertainty surrounding the Iran-US situation and concerns over crude oil prices are keeping markets under pressure.

Meanwhile, Navneet Damani of MOFSL painted a worrying picture for the rupee. He said policy changes related to silver duties and import quotas, along with limited intervention, have added to market panic. Damani warned that if the current trend continues, the rupee could weaken further, potentially touching the 98–100 range.

However, Basumallick believes intervention from the government and the RBI could help ease pressure in the short term, possibly preventing a sharper fall.

Taking a longer-term view, Rajeev Thakkar of PPFAS Mutual Fund said India has faced similar crises before, including the Gulf War and oil shocks. While current conditions appear gloomy, he said such phases eventually pass and should not trigger panic.