New Delhi, March 22 — Indian equity markets are showing “structural resilience” despite strong global macroeconomic pressures and sustained foreign institutional investor (FII) outflows, analysts said.
During the week ending March 20, FIIs maintained a risk-off stance, pulling out a net ₹29,718.9 crore from the markets. The outflows, along with a strengthening U.S. dollar index, pushed the Indian rupee to a provisional record low of 93.71.
Despite these challenges, the Nifty 50 held firm, closing at 23,114.50, up 0.49% for the week. According to Vinit Bolinjkar of Ventura Securities, this resilience was largely due to strong support from domestic institutional investors (DIIs), who made net purchases of ₹30,269.23 crore.
Overall, the market ended the week on a flat note with a slight negative bias, reflecting cautious sentiment. Gains in the early part of the week were erased by a sharp decline on Thursday, followed by volatility in the final session.
As a result, the Nifty 50 slipped 0.16% to close at 23,114.50, while the BSE Sensex edged down 0.04% to settle at 74,532.96.
Early optimism was supported by the partial resumption of shipping activity through the Strait of Hormuz. However, renewed geopolitical tensions—particularly following Israel’s reported strike on Iran’s energy infrastructure—drove crude oil prices back toward recent highs of around $119 per barrel.
Ajit Mishra of Religare Broking Ltd noted that although prices eased slightly afterward, they remain elevated, adding to market concerns.
Additional pressure came from the weakening rupee against the U.S. dollar and subdued global cues, particularly from the United States, further contributing to sustained FII outflows.
Given the fragile sentiment and ongoing global uncertainties, analysts recommend a cautious and selective investment approach. They advise focusing on fundamentally strong large-cap stocks and sectors with stable earnings visibility.
While Brent crude continues to fluctuate around $107 per barrel due to West Asian tensions, the stabilization of the India VIX at 22.81 indicates that the market may be forming a base.
Market experts expect the Nifty 50 to trade within a range of 22,800 to 23,300 in the near term, with a positive bias dependent on easing energy prices and reduced currency volatility.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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