India’s benchmark indexes are set for a muted start on Monday, after logging their eighth session of declines in the last session on a looming sell-on-rally sentiment, while the broader small and midcaps will be in focus given their recent tumble.
The GIFT Nifty futures were trading at 22,976.5 as of 08:19 a.m. IST, indicating that the blue-chip Nifty 50 will open near Friday’s close of 22,929.25.
The Nifty has opened each of the last eight sessions either flat or marginally higher, but failed to sustain gains, losing 3.2% in the period.
“The current fall is driven by a combination of factors such as an earnings slowdown, elevated valuations and trade uncertainties… A sell-on-rally sentiment prevails in the market,” said Vinod Nair, head of research at Geojit Financial Services.
Both the Nifty and BSE Sensex lost about 2.5% each last week, their worst so far in 2025.
The more domestically focussed small-caps and mid-caps shed 9.4% and 7.4%, respectively, their worst since March 2020.
On Friday, the smallcap index dropped more than 20% from its record closing high on December 11, 2024, confirming bear territory.
The midcaps ended 18.4% below their peak closing level on September 24, 2024.
Indian shares fall as US tariff worries persist
A liquidity crunch due to sustained foreign selling added to the drop in markets, analysts said.
Foreign Portfolio Investors (FPIs) have offloaded Indian shares worth about $11.5 billion so far this year, with rising odds for fewer U.S. rate cuts in 2025 and global trade uncertainties keeping them away.
Other Asian markets rose on the day, as the imminent threat of U.S. reciprocal tariffs receded until April.