Indian stock markets remained closed on Monday for Eid-ul-Fitr, while major Asian markets grappled with heavy selling pressure amid heightened investor concerns.
Japan’s Nikkei 225 dropped 4%, Taiwan’s Weighted Index declined 2.97%, and South Korea’s benchmark index slipped over 2.5%, reflecting widespread market jitters.
On Friday, Indian markets ended in the red, with the Nifty closing at 23,519 points after shedding 72 points, while the Sensex declined by 0.25 percent to settle at 77,414.
The ongoing market pressure is largely attributed to U.S. President Donald Trump’s tariff policy, which, despite being factored into market sentiment, continues to cause uncertainty. Investors are now awaiting further clarity on the impact of these tariffs, which are set to take effect on April 2. The coming days will be crucial in determining the long-term market reaction to these policy changes.
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 been net sellers throughout.
Data from the National Securities Depository Limited showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had offloaded equities worth Rs 78,027 crore and Rs 34,574 crore, respectively.
FPIs had fueled the bull run in the stock market before the recent sharp slump. Foreign portfolio investment (FPI) involves an investor buying foreign financial assets. The benchmark Sensex remains nearly 8,500 points below its all-time high of 85,978 points. However, the pace of FPI sell-offs in March has slowed down in recent sessions.
“Despite Friday’s market close showing a decline, the robust recovery witnessed in the latter half of March, fueled by substantial foreign portfolio investor inflows, has enabled the major indices to conclude the fiscal year 2025 with notable gains,” said Sunil Gurjar, a SEBI-registered research analyst and founder of Alphamojo Financial Services.
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.”
(ANI)
