Indian markets brace for volatility in Samvat 2083

Mumbai Indian investors should prepare for another year of uncertainty as domestic equity markets are expected to remain volatile in Samvat 2083, according to market analysts. The new Hindu calendar year, which began with Diwali on Sunday, comes after a turbulent Samvat 2082, marked by significant fluctuations and challenging global economic conditions. Geopolitical developments, movements in crude oil prices and foreign institutional investor (FII) flows are expected to remain the major factors influencing market performance in the coming months. Analysts believe these external uncertainties could continue to affect investor confidence and determine the direction of domestic equities. Samvat 2082 witnessed one of the Indian stock market's weakest performances in nearly 15 years. However, the calendar year concluded on a positive note, with benchmark indices registering a strong recovery. The Nifty 50 and BSE Sensex recorded weekly gains of approximately 8.6 per cent and 8.8 per cent, respectively, marking their biggest weekly advances in nearly six years. The recovery came amid significant global developments, including a Democratic victory in the US midterm elections and a partial unwinding of investments linked to the artificial intelligence (AI) trade. These developments contributed to changes in global market sentiment and eased some pressure on financial markets. Meanwhile, international economic indicators also showed signs of moderation. Brent crude prices declined to $98.3 per barrel, while the yield on 10-year US Treasury bonds fell to 4.86 per cent from a multi-year high of 5.37 per cent. The US Energy Information Administration's October outlook projected Brent crude prices to average $84 per barrel in 2027, provided most Middle Eastern oil production returns to pre-conflict levels by June 2027. However, the agency cautioned that the projection remains conditional, warning that attacks on oil tankers could rapidly alter the global energy outlook.