The stock market today: The BSE Sensex and Nifty50, key indices of Indian equity, opened positively on Monday. The BSE Sensex was above 74,100, while the Nifty50 surpassed 22,500. By 9:23 AM, the BSE Sensex was at 74,186.02, an increase of 357 points or 0.48%. The Nifty50 stood at 22,515.25, up by 118 points or 0.53%.
Recent global market uncertainties and concerns regarding a potential US recession may influence domestic market dynamics this week. However, analysts suggest that the recent adjustments in valuations, alongside favorable elements such as falling crude oil prices, a weakening Dollar Index, and anticipated domestic earnings growth in the upcoming quarters, could cushion market volatility.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The short-term market trajectory is expected to remain stable with a positive inclination. Contributing factors include the continuous decline in Foreign Institutional Investor (FII) outflows and India’s performance exceeding that of the US last week. This encouraging trend is underpinned by a rebound in FY25 Q3 GDP growth to 6.2%, an increase in January’s Index of Industrial Production (IIP) to 5%, and a dip in February’s Consumer Price Index (CPI) inflation to 3.61%. While this supportive macroeconomic environment may bolster the market in the short-term, it is unlikely to sustain a rally. Concerns over trade conflicts are casting a shadow over global trade and economic growth. The impending reciprocal tariffs set to activate on April 2nd could add downward pressure to the markets. Given India’s reputation as both a ‘tariff King’ and ‘tariff abuser,’ the situation is expected to keep markets uneasy, particularly impacting export-oriented sectors, while domestic consumption sectors may remain stable despite tariff concerns.
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On Friday, US equities regained some ground as investors looked for undervalued opportunities after a week dominated by recession apprehensions and a muted risk appetite amid escalating trade disputes initiated by Trump.
Asian markets saw improvements following China’s announcement of measures to boost consumption. Meanwhile, US equity futures experienced a decline as Treasury Secretary Scott Bessent described the recent market downturns as typical.
Crude oil prices opened about 1% higher at the start of trading on Monday, following US assurances to uphold actions against Yemen’s Houthi forces until they stop their maritime assaults.
Gold prices rose on Monday, following a record high last week. This increase was supported by persistent geopolitical tensions, trade tariff anxieties, and expected rate cuts by the Federal Reserve, prompting investors to turn toward safe-haven assets.
On Thursday, foreign portfolio investors were net sellers with a total of Rs 793 crore, while domestic institutional investors bought shares amounting to Rs 1,723 crore.
FII net short positions rose from Rs 1.83 lakh crore on Wednesday to Rs 1.84 lakh crore on Thursday.
