Dalal Street eyes on trade war even as FPI selloff pressure eases

Mumbai: A number of world and home elements are anticipated to weigh on traders’ sentiment when Dalal Street opens for buying and selling on Monday. The escalating world tariff war between the US and its main buying and selling companions that embody Canada, Mexico, China and the EU, and the rising fears of a US recessions – a fallout of the trade war – could be excessive on traders’ minds, market specialists stated.
Foreign funds’ buying and selling actions in India would additionally weigh on the market. So far in March, international portfolio traders (FPIs) have web offered shares price slightly over Rs 30,000 crore, taking the 2025 determine to shut to Rs 1.5 lakh crore. However, the depth of FPI promoting is slowing, market gamers stated.
In addition, steady promoting of Indian shares by international funds, the dollar-rupee trade price, geopolitical developments in West Asia and Russia-Ukraine, and technical elements would additionally mix to resolve the market’s course, they stated. During the week, traders would hold a watch on a bunch of knowledge releases together with FOMC rate of interest determination, weekly US jobless claims and India wholesale value inflation for Feb.
Outside of the inventory market, buying and selling would additionally resume within the commodities market after the Holi break the place numerous individuals would hold a watch on the costs of gold and silver within the home market. On Friday, the value of the yellow metallic within the worldwide markets had crossed the psychologically vital $3,000-per-ounce (Oz) mark, an all-time excessive stage. Prices of silver are additionally on a boil and are at the moment close to its five-month excessive stage of near $34.5/Oz mark.
On Thursday, the sensex closed the truncated buying and selling week at 73,828 factors whereas Nifty was at 22,397 factors. Both the indices have been down on the week. On Wall Street too, the Dow Jones index misplaced over 3% throughout the week to Friday. According to Vinod Nair of Geojit Financial Services, though the escalating world trade war has weighed closely on market sentiments worldwide, home elements have supplied some aid with the Indian financial system exhibiting resilience.
Domestic market’s momentum, nonetheless, would proceed to be influenced by persistent uncertainties surrounding world trade and the worry of a US recession. “The moderation in valuations, along with supportive factors such as falling crude oil prices, an easing dollar index, and expectations of a rebound in domestic earnings in the coming quarters, may limit the volatility and is expected to contribute to a stability amid prevailing uncertainties,” Nair stated.