(27-Mar-2025)Indices may rise at opening bell

GIFT Nifty:

The GIFT Nifty April 2025 futures contract is up 11 points, indicating a flat-to-positive opening in the Nifty 50 index today.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 2,240.55 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 696.37 crore in the Indian equity market on 26 March 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 16251.92 crore (so far) in the secondary market during March 2025. This follows their sale of shares worth Rs 41748.97 crore in February 2024.

Global Markets:

Asian stocks were mixed on Thursday, tracking losses on Wall Street as investors digested U.S. President Donald Trump's plan to impose 25% tariffs on auto imports.

Japanese automaker stocks took a sharp hit after Trump confirmed that the tariffs'targeting imported cars and light trucks'will take effect on April 2. The move could have significant repercussions for Japanese manufacturers, who rely heavily on the U.S. market.

US market closed lower on Wednesday, with investors fretting over the economic impact of the tariffs. Tech stocks also faced selling pressure amid mounting concerns about an oversupply of AI data centers and computing capacity.

At the closing bell, the Dow Jones Industrial Average slipped 0.31%, the S&P 500 lost 1.12%, and the NASDAQ Composite plunged 2.04%.

AI giant NVIDIA dropped 1.2% after already tumbling 5.7% during Wednesday's session. Server makers Broadcom, Dell Technologies, and Super Micro Computer also declined in after-hours trading. Meanwhile, GameStop surged 11% after its management approved a plan to invest excess cash in Bitcoin.

Domestic Market:

The benchmark indices, Nifty and Sensex, tumbled on Tuesday, breaking a seven-day rally as selling in banking and energy stocks pushed the markets into the red. The decline is attributed to broader market consolidation, driven by domestic selling, March-end closing pressures, and caution ahead of key economic events. The Nifty settled below the 23,500 level after hitting the day's high of 23,736.50 in early trade. Analysts view this correction as a natural breather after an extended rally rather than a direct reaction to tariff concerns.

The S&P BSE Sensex dropped 728.69 points or 0.93% to 77,288.50. The Nifty 50 index fell 181.80 points or 0.77% to 23,486.85. In the past seven sessions, the Sensex and the Nifty rose 5.67% and 5.68%, respectively.