India’s benchmark indexes are likely to open little changed on Monday, after logging their biggest gains in three months last week, as uncertainty around U.S. tariffs continues to weigh on sentiments.
The GIFT Nifty futures were trading at 22,583.00 as of 08:20 a.m. IST, indicating that the blue-chip Nifty 50 will likely open near Friday’s close of 22,552.50.
U.S. jobs data and Federal Reserve Chair Jerome Powell’s comments that the world’s largest economy remains in good place have assuaged some fears of economic slowdown.
However, U.S. Commerce Secretary Howard Lutnick’s remark that President Donald Trump won’t let up his pressure on tariffs on Mexico, Canada, and China related to their handling of fentanyl may weigh on sentiment.
While a bullish consolidation is quite likely in the Indian market, any excessive optimism is likely to be fragile ahead of the U.S. reciprocal tariffs, Mehta Equities said.
Most Asian markets fell in early trade, with the MSCI Asia ex Japan down 0.4%, as China’s consumer price index fell at the sharpest pace in 13 months in February, adding to growth worries from a fading U.S. economy and an escalating global trade war.
Reliance, metal stocks power India’s Nifty 50 to its best week in three months
Despite last week’s gains, Indian benchmarks are down about 14% from record high levels hit in September 2024 due to concerns over slowing earnings, persistent foreign outflows and trade worries.
Foreign investors have sold Indian shares worth around $28 billion since late September 2024, with 20.35 billion rupees ($233.5 million) offloaded on Friday, provisional data showed.
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