Stock markets started the week on a cautiously positive note, with the Sensex opening at 74,474.98, higher than its previous close of 74,332.58. Currently, the Sensex is at 74,559.39, up by 226.81 points or 0.31 per cent. On the other hand, the Nifty opened at 22,521.85, slightly lower than its previous close of 22,552.50, but has climbed to 22,625.30, gaining 72.80 points or 0.32 per cent as of 9.40 am. Last week saw a rebound after a three-week losing streak, although concerns over global trade tensions lingered.
Power Grid saw the most significant gains in early trade, surging 3.21 per cent with strong volume. Other notable gainers included Bajaj Finance (2.09 per cent), BEL (1.92 per cent), Bajaj Finserv (1.75 per cent), and BPCL (1.39 per cent). On the flip side, IndusInd Bank witnessed a decline of 3.20 per cent, followed by Bajaj Auto (-1.32 per cent), M&M (-1.26 per cent), Trent (-1.14 per cent), and Titan (-0.81 per cent).
Despite positive remarks from Federal Reserve Chairman Jerome Powell, the Gift Nifty traded down 0.2 per cent, reflecting a cautious sentiment among investors. Foreign Institutional Investors (FIIs) continued their selling streak, having sold equities worth ₹2,035.10 crore on March 7. In contrast, Domestic Institutional Investors (DIIs) provided support by purchasing equities worth ₹2,320.36 crore on the same day. The cumulative FII selling this fiscal year has reached ₹413,907 crore.
Investor concerns primarily revolve around the potential impact of reciprocal tariffs on India, set to begin in early April. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, advised investors to focus on domestic consumption themes to mitigate the impact of potential tariffs. Geopolitical tensions have added to market uncertainty, with President Trump considering sanctions and tariffs on Russia until a ceasefire and peace deal with Ukraine are reached.
Technical analysts are cautiously optimistic about the market’s direction, with a short-term bullish trend and key support and resistance levels identified. In commodities trading, gold and silver experienced profit-taking, while crude oil prices remained volatile.
Sectorally, all major indices showed positive trends last week, with defense and metal indices exhibiting notable strength. Inflation data from the US, Europe, and India this week will be crucial in shaping interest rate decisions by the Fed and RBI. Overall, the market continues to navigate through global uncertainties while maintaining a cautious stance on potential developments.
