Equity markets are expected to be influenced by US tariff developments, global trends, and foreign investor activity this week, according to analysts.
The markets could experience volatility as investor confidence remains weak due to escalating trade tariff concerns and foreign fund outflows. In February, the NSE Nifty dropped 5.88 percent, while the BSE Sensex fell 5.55 percent. Since reaching a record high in September last year, the BSE benchmark index has declined by 14.86 percent, and the Nifty has dropped 15.80 percent.
Vinod Nair, Head of Research at Geojit Financial Services, stated that investors will be monitoring key events such as the tariff policy and jobless claims, with a gradual recovery expected as earnings improve and global trade uncertainties ease.
Regarding the macroeconomic outlook, the announcement of HSBC manufacturing and services PMI data will also be closely watched by investors.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, believes that weak global sentiments and a lack of domestic triggers will continue to weigh on the market’s performance.
The Indian economy grew by 6.2 percent in the December quarter, showing signs of recovery but facing challenges amid the threat of a US tariff war. Gross GST collections in February increased by 9.1 percent to approximately ₹1.84 lakh crore, indicating a potential economic revival driven by domestic consumption.
Ajit Mishra, SVP of Research at Religare Broking Ltd, highlighted that market uncertainty, concerns over trade wars, and persistent FII selling are contributing to the market pressure.
Satish Chandra Aluri, Analyst at Lemonn Markets Desk, suggested that the market may experience a relief rally from oversold conditions but expects overall volatility with a downward bias in the near term.
In conclusion, the market outlook will be shaped by various factors including US tariff developments, global trends, economic data releases, and investor sentiment.
