Stock markets are likely to open higher on Tuesday after a sharp fall in the previous session, but uncertainty remains as global tensions and rising oil prices continue to worry investors.
Early signals show a positive start. GIFT Nifty futures were trading at 22,878 at around 8:40 am, indicating that the Nifty 50 may open about 1.6% higher compared to Monday’s close of 22,512.65.
The expected rebound comes after against Iranian power plants following what he called “productive conversations” with Tehran. This has eased some immediate fears of a deeper energy shock.
However, the situation remains unclear. Iran’s Parliamentary Speaker later said that no talks had taken place with the United States. This contradiction has kept investors cautious despite the initial positive reaction in global markets.
Asian markets were trading higher, with regional indices up around 0.7%. Meanwhile, Brent crude oil remained elevated at about $104 per barrel, continuing to put pressure on inflation and market sentiment.
On Monday, markets saw a strong sell-off. The . The fall has extended the recent weakness in the market.
Since the US-Israeli war on Iran began in late February, the Nifty is now down 10.6%. Rising crude oil prices have increased concerns around inflation and have also raised worries about India’s economic growth.
Another major concern is the falling rupee, which has hit an all-time low. A weaker rupee increases import costs, especially for crude oil, adding more pressure on the economy.
Foreign investors have continued to pull money out of markets. On Monday, they sold shares worth Rs 10,414.23 crore.
This marked their sixteenth straight day of selling. So far in March, foreign investors have sold over Rs 90,000 crore worth of shares, which is about $10.2 billion or roughly Rs 95,431 crore.
This puts the current outflow on track to be the highest since October 2024.
Continuous selling by foreign investors has been one of the key reasons behind the recent fall in the market.
Market experts say that charts are also showing signs of weakness.
Aakash Shah, technical research analyst at Choice Equity Broking, said the Sensex has broken below the important support zone of 74,000 to 73,500. This suggests that the market is in a short-term weak phase.
He said the next support is around 72,000 to 72,200, which may act as a demand zone. On the upside, resistance is seen between 73,000 and 73,200. Any rise towards this level may face selling pressure unless there is a strong recovery.
While markets may open higher, the overall situation remains uncertain.
Motilal Oswal Financial Services said markets are going through a period of stress, with investor sentiment mainly driven by global developments and oil prices.
The brokerage said conditions are likely to remain fragile, with high volatility and risk of further downside in the near term.
In simple terms, even if markets open in the green, the bigger trend will depend on how the global situation unfolds, especially the Iran-related developments, crude oil prices, and movement of the rupee.
For now, investors are likely to stay cautious, as the risk of further swings in the market remains high.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)