Mumbai (Maharashtra) [India]: Indian stock markets remained closed on Monday in observance of Eid-ul-Fitr, while major Asian markets experienced sharp declines amid investor concerns.
At the time of reporting, Japan’s Nikkei 225 had plummeted by 4 per cent, Taiwan’s Weighted Index fell by 2.97 per cent, and South Korea’s benchmark index dropped by over 2.5 per cent, reflecting widespread selling pressure.
On Friday, Indian markets ended lower, with the Nifty closing at 23,519 points after shedding 72 points, while the Sensex declined by 0.25 per cent to settle at 77,414.
The ongoing market volatility is largely attributed to U.S. President Donald Trump’s tariff policy. While these tariff measures have been factored into market sentiment, uncertainty persists as investors await further clarity. The tariffs are set to take effect on April 2, making the upcoming days crucial in determining long-term market trends.
Foreign Portfolio Investors Continue Selling
In the Indian markets, Foreign Portfolio Investors (FPIs) have remained net sellers for the third consecutive month in March. So far in 2025, they have consistently sold off equities.
Data from the National Securities Depository Limited (NSDL) revealed that FPIs sold stocks worth Rs 3,973 crore in March. This follows significant sell-offs in January (Rs 78,027 crore) and February (Rs 34,574 crore).
FPIs had been instrumental in fueling the recent market rally, but the latest downturn has been driven by sustained outflows. Despite this, the pace of FPI sell-offs in late March has shown signs of slowing down. The benchmark Sensex remains nearly 8,500 points below its all-time high of 85,978 points.
Market Outlook and Technical Analysis
Commenting on the market trends, Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services, stated, “Despite Friday’s market close showing a decline, the robust recovery witnessed in the latter half of March, fueled by substantial Foreign Portfolio Investor (FPI) inflows, has enabled the major indices to conclude fiscal year 2025 with notable gains.”
He further added, “Currently, the price is trading between a hurdle and support, struggling to break the crucial resistance level of 23,800. A breakout above resistance would indicate a continuation of the uptrend in the sector. The technical price trading above all key moving averages further signals an uptrend.”
As global and domestic factors continue to shape market movements, investors remain watchful for further developments in policy changes and foreign investment trends.