Analysts expect equity markets to be influenced by the implications of the April 2 reciprocal tariffs on global trade, along with trends in overseas markets and foreign institutional investor (FII) trading activity. The US has threatened to impose reciprocal tariffs on key trading partners, including India, which could significantly affect investor sentiment.
“All eyes are now on Trump’s April 2 tariff announcement,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd told PTI.
Key economic indicators to watch
With markets closed on Monday for Eid-Ul-Fitr, investors will shift focus to global developments in the absence of major domestic triggers. PMI data for manufacturing and services sectors will be closely monitored, along with the rupee-dollar trend and global oil benchmark Brent crude movements.
“With the upcoming holiday-shortened week, market participants will turn their attention to global developments in the absence of major domestic triggers. The implementation of reciprocal tariffs from April 2 and its broader implications on global trade will be closely monitored,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
FII flows and quarterly earnings outlook
The trend of FIIs moving from sustained selling to modest buying continued with increased intensity in the week ending March 28. Analysts believe that if the April 2 tariffs are not severe, the market rally may continue.
“Going forward, the trend in FII flows will depend mainly on Trump’s reciprocal tariffs expected on April 2nd. If the tariffs are not severe, the rally may continue,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Investors will also track quarterly earnings reports for insights into corporate performance.
Market performance last week
Last week, the BSE benchmark Sensex climbed 509.41 points (0.66%), and the NSE Nifty rose 168.95 points (0.72%). In FY 2024-25, the Sensex surged 3,763.57 points (5.10%), and the Nifty gained 1,192.45 points (5.34%). The market cap of BSE-listed firms rose to ₹4,12,87,646.50 crore (USD 4.82 trillion).
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
