Indian equity markets are poised to open higher on Monday, March 16, as indicated by GIFT NIFTY futures, which rose by 68 points (0.3%) to 23,267 in early trading. The market sentiment is mixed, with Asian markets showing a varied performance.
On Friday, March 13, both the SENSEX and NIFTY50 ended in the red, marking the third consecutive day of declines amid a broad-based sell-off. The decline was driven by global concerns, including rising crude oil prices that crossed $101 per barrel amid escalating tensions in West Asia. Additionally, the rupee hit a new all-time low of 92.45 against the US dollar, weighed down by persistent foreign institutional investor (FII) outflows.
The BSE SENSEX plunged 1,470.50 points (1.93%) to close at 74,563.92, while the NIFTY50 declined by 488.05 points (2.06%) to settle at 23,151.10.
Asian Markets Overview
Most Asian markets traded lower on Monday, influenced by ongoing Middle East tensions and elevated oil prices. Japan’s Nikkei fell by 1.2%, Hong Kong’s Hang Seng gained 0.3%, China’s Shanghai Composite declined 0.9%, and South Korea’s KOSPI dipped by 0.6%. The elevated crude oil prices are raising concerns over inflation and may influence central bank policies this week.
Wall Street Recap
US markets closed lower on Friday, tracking the surge in crude oil prices. The Dow Jones Industrial Average dipped 0.26%, the S&P 500 fell 0.6%, and the Nasdaq Composite declined by 0.9%, reflecting cautious investor sentiment amid geopolitical uncertainties.
Crude Oil and Middle East Tensions
International crude oil prices surged above $100 per barrel due to escalating tensions in the Middle East. President Donald Trump announced ongoing discussions with seven countries to secure the Strait of Hormuz, which Tehran has largely blocked, affecting global oil tanker traffic. Trump emphasized that nations dependent on Gulf oil have a responsibility to protect the vital waterway amid the US-Israeli conflict with Iran.
FII/DII Activity
Foreign institutional investors (FIIs) sold shares worth ₹10,717 crore on Friday, while domestic investors (DIIs) bought shares worth ₹9,977 crore, according to NSE data. So far this month, FIIs have sold ₹52,704 crore worth of shares, compared to ₹22,615 crore bought in February, per NSDL data.
Stocks to Watch
Adani Power: Investors will keep an eye on Adani Power, which announced it received a Letter of Award from Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) to supply 1,600 MW of power from its upcoming ultra-supercritical thermal power project.