Mumbai, March 7, 2025: The BSE Sensex ended the trading session on a flat note, slipping 7.51 points to close at 74,332.58 on Friday, while the NSE Nifty edged up by 7.80 points, settling at 22,552.50.

Despite a positive start, both indices surrendered early gains as concerns over the global trade war and foreign institutional investor (FII) outflows weighed on investor sentiment.

Market Performance: Early Gains Erased Due to Volatility

Morning Session:

• Sensex dropped 137.22 points to 74,202.87 in early trade.
• Nifty fell 28 points to 22,516.70, struggling amid global trade uncertainties.

Closing Figures:

• BSE Sensex: 74,332.58 (-7.51 points)
• NSE Nifty: 22,552.50 (+7.80 points)

The market saw sharp fluctuations, as foreign institutional investors (FIIs) continued to sell, dampening sentiment despite resilience in domestic equities.

Top Gainers & Losers in Sensex Pack

Gainers:
Zomato
Tech Mahindra
ITC
IndusInd Bank
Titan
Power Grid
Hindustan Unilever
NTPC
Infosys
HCL Technologies

Laggards:
Adani Ports
Kotak Mahindra Bank
Tata Motors
Tata Steel
UltraTech Cement
Reliance Industries
Nestle India

Global Factors Driving Market Sentiment

According to Vinod Nair, Head of Research at Geojit Financial Services, the uncertainty in global markets due to US tariffs and trade war concerns has led to increased risk aversion among investors.

Key Market Observations:
The S&P 500 index is showing signs of a deeper correction, raising concerns about the impact of tariffs on the US economy.
Emerging markets (EMs), including India, have witnessed significant capital outflows due to FII selling.
China and Germany are implementing reforms to boost domestic economies in response to US policies.
The dollar index is weakening, which is good news for India as it could ease inflationary pressures.

FIIs vs DIIs: Who’s Driving the Market?

Investor Activity on March 7, 2025:
Domestic Institutional Investors (DIIs) bought equities worth ₹1,617.80 crore
Foreign Institutional Investors (FIIs) sold equities worth ₹2,377.32 crore

Despite FIIs continuing to pull money out of Indian equities, the market remains supported by retail, HNI (high net-worth individuals), and ultra-HNI investors.

“India’s economic growth is recovering, and stock market valuations are fair now. Despite FII selling, the market is seeing increasing retail and institutional buying, which can support further upward momentum,” said Nair.

Other Market Indicators

Brent Crude Oil: USD 69.51 per barrel (+0.07%)
US Federal Reserve Update: Chair Jerome Powell’s commentary and the Fed’s balance sheet data will be released later on Friday, potentially influencing market trends next week.

Previous Session Recap (March 6, 2025):

Sensex: +609.86 points (closed at 74,340.09)
Nifty: +207.40 points (closed at 22,544.70)

The previous session saw strong gains, but volatility returned on Friday amid global trade tensions and profit booking by investors.

Markets Hold Ground Despite Global Uncertainty

The Indian stock market remained resilient despite FII outflows and global trade concerns. While Sensex closed slightly lower, Nifty managed to stay in positive territory, reflecting underlying strength in the domestic economy.

With global trade tensions, US Fed updates, and FII movements continuing to shape market sentiment, investors should remain cautious but optimistic about India’s long-term growth trajectory.