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%.
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.
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.