Indian equity markets are expected to open with a sharp gap-down and trade with a weak undertone, reflecting heightened global risk aversion and growing geopolitical uncertainty.
According to Ponmudi R, CEO of Enrich Money, the deepening crisis in West Asia, with no clear signs of de-escalation from any of the parties involved, has intensified concerns over potential disruptions to crude oil supply routes if the conflict persists—particularly through the Strait of Hormuz, one of the world’s most strategically important energy corridors. These developments have pushed energy prices higher and driven the Indian rupee to a record low against the US dollar.
GIFT Nifty at 23,560 indicates Nifty may see a gap-down opening of 150 points.
Foreign Institutional Investors have remained consistent net sellers in the Indian market during March, reflecting global portfolio rebalancing and a shift toward safer assets. While Domestic Institutional Investors continue to provide partial support through steady buying, persistent FII outflows continue to weigh on overall market sentiment, said Ponmudi.
“The near-term outlook for Indian equities remains closely tied to geopolitical developments, crude oil price trends, and institutional investor flows, which are expected to keep market volatility elevated and maintain a cautious to bearish bias in the short term,” he added.
Meanwhile, global stocks are down between 0.5 and 2 per cent across the Asia-Pacific region.