Global equity markets found fresh momentum on Friday as Asian shares and bonds rose while oil prices continued their decline. S. 7%. A chip‑focused index climbed over 3%, signalling renewed confidence in technology after the Federal Reserve’s first rate hike since 2023 sparked earlier sell‑offs. The rally reflects a combination of factors.
The Fed’s rate increase initially rattled risk assets, but the market’s reaction softened as investors digested the data and noted that the hike may be a one‑off move. Meanwhile, oil’s extended decline eases inflationary pressure on import‑dependent economies, including India, where lower crude costs can improve corporate earnings and consumer purchasing power. Bond yields also fell, making fixed‑income assets more attractive and supporting a broader risk‑on sentiment. S. cues.
Sectors tied to commodities, such as energy and metals, may benefit from cheaper oil, while technology and export‑driven firms could see a lift from the chip rally. Foreign institutional inflows, buoyed by the improved risk appetite, may add further support to Indian equities. Overall, the easing of rate‑hike fears and the oil price dip create a more favourable backdrop for Indian investors, but prudence remains essential as volatility can return if monetary policy signals shift again.