Stock Market Update: Sensex Above 350 Points, Nifty At 22600 – Market Rebound Amid Global Volatility

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Although the markets have rebounded after a challenging period, uncertainties remain high due to ongoing geopolitical tensions, tariff discussions, and fluctuating commodity prices.

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India’s benchmark indices started positive today as Sensex opened, up by 357.23 points or 0.48% to 74,689.81 while Nifty rose to 22,666.40 points , up 113.90 points or 0.51%.

On Friday, following three consecutive weeks of declines, global markets rebounded strongly with nearly 2 per cent gains, driven by positive signals from both international and domestic economic indicators. This upswing, which has boosted investor sentiment, comes as traders prepare for a shorter trading week due to upcoming holidays, with the focus shifting to global developments amidst limited domestic events. According to industry insights, key factors include updates on tariff discussions, geopolitical tensions, and their effects on the US dollar and crude oil prices.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed, “The trend of FII selling in India continued in early March, too. But there are signs of slight decline in the intensifying in the last couple of days. Up to March 7th FIIs have sold equity for Rs 24,753 crores taking the total equity selling in CY 2025 to Rs 1,37,354 crores.” His comments underscore that, despite the recent rebound, foreign institutional investors remain cautious amid persistent market volatility.

In the United States, equities closed higher on Friday, recovering from early losses following a positive economic assessment by Federal Reserve Chair Jerome Powell. This recovery came in spite of trade policy uncertainties that contributed to the largest weekly drop in months. In contrast, Asian equities slipped on Monday, pressured by concerns over slowing US growth and a notable decline in China’s inflation—falling negative for the first time in a year.

Oil prices also declined on Monday, as worries over US import tariffs dampened global economic growth and fuel demand. Moreover, increased production from OPEC+ producers has reduced investor appetite for higher-risk assets. Meanwhile, gold prices edged up slightly, buoyed by a weakening US dollar and a flight to safety amid ongoing global trade war concerns. Market participants are now awaiting further indicators on the Federal Reserve’s stance on interest rates.

On the investment front, foreign portfolio investors emerged as net sellers on Friday, with outflows amounting to Rs 2,035 crore, while domestic institutional investors purchased shares worth Rs 2,320 crore. Consequently, the net short position of FIIs increased from Rs 1.74 lakh crore on Thursday to Rs 1.76 lakh crore on Friday, reflecting continued risk aversion among global investors.

Although the markets have rebounded after a challenging period, uncertainties remain high due to ongoing geopolitical tensions, tariff discussions, and fluctuating commodity prices. With the upcoming shorter trading week, traders and investors will be closely monitoring these global developments, while the persistent outflows by FIIs suggest that caution continues to prevail in the current economic climate.