Markets Rise, But Nerves Rattle—Oil Shock, FII Exit, and Trump Tariff Threats Keep Investors on Edge

Indian equity markets may be flashing green, but investor sentiment remains fragile amid a swirl of global and domestic headwinds. On July 4, the Sensex rose 193 points and the Nifty closed above 25,400, yet both indices slipped sharply from intraday highs, reflecting underlying volatility.

 

The biggest worry? A potential oil price shock as OPEC+ mulls a 411,000 bpd output hike while West Asia tensions escalate. The US bombing of Iranian nuclear sites has raised fears of a Strait of Hormuz blockade, threatening 40% of India’s crude imports.

 

Meanwhile, foreign institutional investors (FIIs) have turned net sellers in June, offloading ₹4,192 crore so far, after heavy buying in May. The SEBI crackdown on Jane Street, freezing ₹4,800+ crore over alleged derivatives manipulation, has also shaken confidence.

 

Adding to the jitters: Trump’s looming July 9 tariff deadline, which could reignite a US-India trade spat. Gold prices are surging as investors flee to safe havens, and the rupee remains under pressure.

 

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Source: Financial Express