Indian stock markets have remained steady despite rising tensions between the US and Iran and a sharp jump in crude oil prices. According to Sneha Poddar of Motilal Oswal Financial Services (MOFSL), the market's resilience reflects the strong fundamentals of the Indian economy and encouraging corporate earnings.
She said that although crude oil prices had briefly climbed close to $91 a barrel, markets have not reacted as sharply as many had expected. A mixed but largely healthy start to the June-quarter earnings season has also helped improve investor confidence.
Poddar added that foreign institutional investors (FIIs) have also slowed their aggressive selling. She believes global investors continue to see India as an attractive and diversified long-term market, which has supported overall sentiment.
On the banking sector, Poddar said ICICI Bank was the clear standout among the large private lenders that reported earnings over the weekend. She noted that the bank has consistently delivered strong financial performance over several quarters.
While credit growth remained healthy for other major private banks, she pointed out that pressure on net interest margins and a slight deterioration in asset quality remained concerns. She expects these banks to recover gradually, but said high borrowing costs could continue to weigh on their performance in the near term.
For investors, Poddar prefers ICICI Bank, while HDFC Bank may suit those with a longer investment horizon of around two years.
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