Overview
- Stocks opened higher on Thursday after Brent and WTI fell when President Donald Trump said US‑Iran negotiations looked close to a deal, but the rally faded and benchmarks finished mixed.
- Traders reacted to large crude moves because India imports nearly 90% of its oil, so lower oil eased near‑term inflation and margin worries while higher oil raises fuel and trade‑deficit pressure.
- The rupee hit fresh lows near 96.8–96.96 per dollar in recent sessions, increasing costs for importers and keeping inflation and foreign‑flow risk elevated for domestic markets.
- Foreign institutional investors continued to sell, with provisional data showing heavy FII outflows and cumulative withdrawals since the Iran conflict of about USD 22–23 billion, which amplified volatility.
- Market structure and policy risk drove sharp intraday swings: India VIX rose toward 18–19, late buying in large caps such as Reliance provided episodic support, and analysts say crude, the rupee, FII flows and RBI signals will determine next moves.