Indian stock markets remained closed on Monday in observance of Eid-ul-Fitr, while major Asian markets grappled with heavy selling pressure, reflecting investor concerns over global economic trends.
At the time of reporting, Japan’s Nikkei 225 had plunged by 4 per cent, Taiwan’s Weighted Index had declined by 2.97 per cent, and South Korea’s benchmark index had fallen over 2.5 per cent.
The downturn highlighted the extent of caution prevailing among investors across the region.
On Friday, Indian markets had closed on a weak note, with the Nifty shedding 72 points to end at 23,519, while the Sensex dropped 0.25 per cent to settle at 77,414.
The losses were primarily attributed to global uncertainties, with the tariff policies of United States President Donald Trump continuing to cast a shadow over investor sentiment.
Despite being largely factored into market expectations, the impending implementation of these tariffs on April 2 has further stoked uncertainty. Investors are closely watching developments in the coming days to assess the long-term repercussions.
In India, Foreign Portfolio Investors (FPIs) have remained net sellers for the third consecutive month in March, extending a persistent selling trend throughout 2025.
Data from the National Securities Depository Limited (NSDL) indicates that FPIs offloaded stocks worth Rs 3,973 crore in March. This follows significant outflows in January and February, amounting to Rs 78,027 crore and Rs 34,574 crore, respectively.
Despite FPIs playing a pivotal role in fuelling previous market rallies, their sustained withdrawal has kept the benchmark Sensex nearly 8,500 points below its all-time high of 85,978 points. However, the pace of sell-offs in March has shown signs of slowing down.
“Despite Friday’s market close showing a decline, the robust recovery witnessed in the latter half of March, fuelled by substantial Foreign Portfolio Investor (FPI) inflows, has enabled the major indices to conclude fiscal year 2025 with notable gains,” said Sunil Gurjar, a SEBI-registered research analyst and founder of Alphamojo Financial Services.
He 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 continuation of the uptrend in the sector. The technical price trading above all key moving averages further signals an uptrend.”
As global markets remain volatile, investors will be watching how the Indian markets react once they resume trading post the Eid holiday.
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