The Nifty 50 index ended the truncated trading week with a 0.7% decline, led by sustained selling pressure in the IT sector. On Thursday, March 13, the index closed at 22,397.20, down 73.30 points or 0.33%, with markets remaining shut on Friday for Holi.
As markets reopen on Monday, March 18, investors will closely monitor key domestic and global events, including the US Federal Reserve’s FOMC meeting, global market cues, and institutional investment trends, which could influence market sentiment.
Global Market Cues & FOMC Meeting
One of the most anticipated events for global markets is the Federal Open Market Committee (FOMC) meeting, scheduled for March 18-19. While the US Federal Reserve is expected to keep policy rates unchanged, Fed Chair Jerome Powell’s commentary on inflation, economic outlook, and rate cut expectations will be critical.
Meanwhile, US markets ended higher on Friday, recovering from recent losses.
- Dow Jones: +1.66% (up 674.62 points to 41,488.20)
- S&P 500: +2.13% (up 117.42 points to 5,638.94)
- Nasdaq Composite: +2.61% (up 451.08 points to 17,754.10)
Impact of Trump Tariffs & Market Sentiment
Markets remain cautious amid uncertainty over Trump’s tariff policies, but US Secretary of State Marco Rubio attempted to ease concerns, clarifying that the tariffs are not meant to harm US allies. Meanwhile, Tesla has warned the Trump administration about retaliatory tariffs impacting US exports, adding to global trade worries.
FII & DII Activity in March
Foreign institutional investors (FIIs) have continued their selling spree in Indian equities, offloading stocks worth ₹30,015 crore in the first 15 days of March. Since the beginning of 2025, total FII selling has reached ₹1,42,616 crore, raising concerns about sustained outflows.
Market Outlook for Next Week
With IT stocks leading the decline last week, traders will closely monitor sectoral trends and global market reactions. The Fed’s policy statement, foreign investment trends, and domestic macroeconomic data will be key drivers for Nifty 50 and Sensex in the upcoming week.
