Indian stock markets opened flat on Friday after two days of gains. Continuous selling by foreign investors is affecting market sentiment, as investors await the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting and upcoming corporate earnings reports.
Market opening and performance
The Nifty 50 index opened at 22,508.65 points, down 36.05 points or 0.16 per cent. At the same time, the BSE Sensex opened with a marginal gain at 74,347.14 points, up only 7 points or 0.01 per cent. However, the overall market sentiment remains weak due to external factors.
Market analysts believe that global economic conditions and Trump’s proposed tariffs are affecting the market movement.
Foreign portfolio investors (FPI) selling continues
Experts believe that the selling by foreign portfolio investors (FPIs) is unlikely to subside before April, as investors await strong corporate earnings and decisions of the RBI’s MPC meeting.
Banking and market expert Ajay Bagga told ANI, “The impact of the continued FPI selling continues on the Indian markets. There will be no domestic factors to support the market ahead of corporate earnings reports and the RBI’s MPC meeting in April, so global indicators are more influential. The outcome of Commerce Minister Piyush Goyal’s talks with the US will be a key factor in the coming weeks, as India prepares for retaliatory tariffs on April 2.”
Impact of global economic concerns on the market
International developments, such as the European Central Bank’s (ECB) recent interest rate cut and the impact of Trump’s tariff policies, have impacted market sentiment.
Ajay Bagga further added, “The ECB has cut rates once again as expected, but Trump’s tariffs have destabilized the US markets. Also, Federal Reserve Governor Christopher Waller has ruled out the possibility of any Fed rate cuts in March. The Nasdaq has entered the correction zone as investors are selling ‘Magnificent Seven’ heavyweight stocks due to Trump-related risks. The market is analyzing Trump’s first term record to see at what level he will bend and when he will soften the tariff policy.”
Sectoral performance and market trends
The broader market saw mixed trends across sectors. Most sectoral indices remained under pressure, although Nifty Realty and Nifty Media saw strength.
- Nifty Bank fell 0.34 percent.
- Nifty Auto was down 0.16 percent.
- Nifty IT was trading down 0.31 percent.
In the Nifty 50 index, 14 stocks opened in the green, while 25 stocks declined and 11 stocks remained unchanged.
Technical analysis and market outlook
Akshay Chinchalkar, Head of Research, Axis Securities, said, “Nifty gained for the second consecutive day on Thursday, marking its longest two-day gain since late January. The daily candle formed a long lower shadow, indicating that bulls are buying despite early volatility.”
He further added, “Resistance is in the range of 22,588 to 22,720, while support is seen in the range of 22,230 to 22,410. Strategically, the market bulls are showing signs of life, especially after yesterday’s pullback.”
Investor sentiment and future market direction
Market experts believe that the continued selling by foreign investors may keep the Indian equity markets under pressure in the near future. Now the focus is on corporate earnings and RBI’s monetary policy decisions, which will determine the market direction.
Until then, global factors, including trade policies, interest rate changes and geopolitical events, will play a key role in market performance. Investors remain cautious but optimistic that strong earnings reports and domestic policy clarity could drive market recovery in the coming weeks.
Conclusion
Indian stock markets opened flat, but continued to remain subdued amid foreign investor selling, global economic uncertainties and the impact of Trump’s trade policies. Investors are keeping an eye on domestic and international developments, with April corporate earnings reports and the RBI monetary policy meeting being seen as the next key market events.
At the moment, traders and investors are handling a volatile market scenario, attempting to strike a balance between domestic resilience and external challenges. source ANINEWS
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