Nifty, Sensex open marginally down, struggle continues as FPIs sold Rs 54,000 cr in March alone

MUMBAI: Domestic equity markets continued to remain under pressure on Monday morning as both benchmark indices opened lower amid sustained foreign portfolio investor (FPI) selling and rising global uncertainty triggered by the Middle East crisis.

The Nifty 50 index opened at 23,116.10 with a decline of 35 points or 0.15 per cent, while the BSE Sensex opened at 74,415.79, falling by 148.13 points or 0.20 per cent. Market experts noted that geopolitical tensions and persistent foreign investor outflows are weighing on investor sentiment.

Ajay Bagga, a banking and market expert, said that India is currently navigating a complex diplomatic situation while global macro conditions continue to affect domestic markets. “India is playing a masterful, if stressful, diplomatic game. While the Strait is ‘shut’ to some, three Indian tankers (including LPG carriers) were granted safe passage. This confirms New Delhi’s unique position: able to talk to both the Trump administration and Tehran”, he pointed out.

“However, the ‘Macro’ is punishing the ‘Micro’. Foreign Portfolio Investors are voting with their feet. They have dumped a massive Rs 54,000 crore in March alone. FPIs continue to be positioned deeply net short on index futures. They aren’t just selling; they are actively betting on a deeper correction. The level is hovering around 23,240, signaling that the Indian indices will likely struggle to find buyers until the ‘Super Week’ central bank commentary provides some clarity,” he said.

Meanwhile, global commodity prices also remained elevated. Brent crude prices have been rising steadily compared to last week’s closing levels and are currently trading at $104 per barrel. Precious metals also remained on the higher side. Gold prices moderated marginally in Monday’s opening, but were still high at Rs 158,400 per 10 grams for 24 karat gold. Silver prices, however, declined sharply by 3.24 per cent in Monday’s opening to Rs 259,279 per kilogram.

Foreign portfolio investor selling has remained persistent throughout the month. FPIs have been net sellers on all trading days in March so far. The total FPI selling through exchanges till March 13 stood at Rs 54,455 crore.

Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, said the Nifty 50 index is witnessing strong technical weakness. “Nifty 50 witnessed strong selling pressure this week, recording its worst weekly performance in four years. Technically, the index has breached a crucial support level, indicating increasing bearish momentum. If it sustains below this level, further downside may follow, while any pullback could face resistance near the previously broken support,” he said.

In other Asian markets, a mixed trend was observed in early trade. Hong Kong’s Hang Seng index surged by 0.5 per cent to 25,589 in the opening session, while Taiwan’s weighted index gained 0.02 per cent to 33,405. However, several other Asian markets remained under pressure at the time of filing this report. Japan’s Nikkei 225 index declined by 1.05 per cent to 53,252, Singapore’s Straits Times index fell by 0.02 per cent to 4,841, and South Korea’s Kospi index was down by 0.38 per cent to 5,466.

In the United States, markets closed lower on Friday. The Dow Jones index declined by 0.26 per cent to close at 46,558. The S&P 500 index fell by 0.61 per cent to 6,632, while the Nasdaq closed at 22,105 with a decline of 0.93 per cent. (ANI)