Domestic investors are back led by tax harvesting and peaking interest rates

The Indian stock market rallied after the selling pressure experienced in the previous fiscal year (FY23), thanks to a return of domestic investors and favorable factors such as a pause in interest rate hikes and a fall in international crude oil prices. However, concerns about the global crisis and potential contagion from US banks could undermine the rally. The US Fed’s policy of pausing interest rate hikes while keeping actual interest rates high for a long period also presents a concern. The Q4 results were below expectations, with IT being the worst performer, while banking and auto performed well.