Market Overview and Early Morning Trading
The Indian stock market faced a significant downturn on Monday morning, with both the BSE Sensex and Nifty50 witnessing sharp declines. At 9:16 AM, the BSE Sensex dropped to 76,843.16, down by 663 points or 0.86%. Meanwhile, the Nifty50 stood at 23,266.05, marking a decline of 216 points or 0.92%. This sharp drop follows a turbulent period during the previous week, which concluded with a positive shift in market performance after the Budget day. Analysts suggest that the market’s true response to the Budget may unfold in the coming days, especially considering the low engagement from foreign investors during the Budget session.
Technical Analysis and Market Outlook
Despite the decline, technical analysis indicates that the Indian Stock Market, specifically Nifty50, is maintaining positive momentum, albeit with resistance at the 23,500-23,600 range. If this barrier is overcome, Nifty50 could rise to levels near 24,000. On the other hand, support is seen around 23,300. Market experts, including Nagaraj Shetti from HDFC Securities, suggest that breaking these key levels will determine the next movement in the market. It is expected that the market will gradually stabilize and find a clearer direction in the coming days.
Global Market Impact and Economic Concerns
The global market, particularly in the United States, has experienced a negative shift following the announcement of tariffs on imports from Canada, Mexico, and China by the US President. This decision led to a decline in US markets on Friday, with the US dollar strengthening, oil prices rising, and equity markets suffering. The announcement raised concerns about possible disruptions in crude oil supply from two major US suppliers. This, in turn, pushed oil prices higher despite potential reduced fuel demand.
Additionally, the Chinese yuan hit its lowest level in offshore trading, and the Mexican peso and Canadian dollar also suffered significant losses, reaching their lowest points in years. These developments indicate escalating tensions in global trade, which are likely to affect market sentiment.
In the Indian market, foreign portfolio investors (FPIs) turned net sellers, offloading shares worth Rs 1,188 crore on Friday. In contrast, domestic institutional investors (DIIs) made purchases amounting to Rs 2,232 crore. The short positions of foreign institutional investors (FIIs) increased slightly, moving from Rs 1.73 lakh crore on Friday to Rs 1.74 lakh crore on Saturday.
Overall, the indian stock market remains volatile, and investors are advised to stay cautious in the short term while keeping an eye on global trade developments and domestic market movements.
