Easing commodity prices aid market rally; indices jump 2.6% during week

FPI selling in June nears Rs 50,000 crore

The benchmark indices rallied close to 3 per cent this week on optimism that easing commodity prices will help cool inflation and boost corporate earnings.

In the preceding week, the indices had plunged about 6 per cent – their worst weekly showing in over two years – on concerns that aggressive monetary tightening by central banks will trigger a global recession.

Those same fears, however, also led to a sell-off in commodities like Brent crude, steel, iron ore, and other industrial metals. The fall in input costs, coupled with attractive valuations, helped the market recover from last week’s rout, said experts.

The benchmark