Domestic markets are expected to maintain their positive momentum this week, as it marks the end of the fiscal year and the closure of the March series on the NSE. Analysts anticipate some volatility due to the derivative market, with global sentiment playing a key role in determining market direction in the absence of significant domestic cues.
Ajit Mishra, SVP of Research at Religare Broking Ltd, emphasized the importance of monitoring the expiry of March derivatives contracts and FII activity. He highlighted that developments in the US markets, such as tariff-related updates and GDP growth data, will also impact investor sentiment. While the US markets experienced a brief respite after a sharp decline, the mixed signals suggest potential volatility ahead.
Nifty futures trading at Gift Nifty at 23,490 indicate a 100-point gain for Nifty at the opening. Market experts are optimistic about the return of foreign portfolio investors to Indian stocks after a period of sustained selling since September 2024.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, the recent reversal in FII selling has improved market sentiments, leading to a rally in the market. He attributed this shift to positive domestic factors like growth acceleration, declining inflation, and a weakened dollar.
In their March 2025 report, Motilal Oswal Private Wealth (MOPW) highlighted how equity markets witnessed a correction phase amid uncertainty caused by factors like US tariffs and efforts by China to stimulate its economy. The markets are expected to remain in a corrective or consolidation phase due to these uncertainties, despite some signs of economic recovery in Q3 FY25 GDP.
MOPW advised investors to proceed with caution and adopt a balanced and resilient investment strategy. They suggested focusing on sectors like banking, financials, metals, and energy, while also considering opportunities in PSU and auto stocks. While midcap and smallcap stocks may offer trading opportunities, aggressive positioning should be avoided.
Overall, the market sentiment remains positive, but investors are urged to monitor key technical levels and global cues closely for direction. SBI Securities recommended sticking to quality businesses with favorable valuations for medium to long-term investments. In the Asian markets, stocks were trading mixed on Monday morning.
In conclusion, the article emphasized the need for caution and strategic investment decisions during this period of market volatility, urging investors to stay informed and attentive to market developments.
