Equity Market Outlook For The Upcoming Week Driven By Domestic And Global Factors

The equity market outlook for the upcoming week will be influenced by several key domestic factors, including the:

• Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting,
• India’s Consumer Price Index (CPI) data for March, and
• Industrial production figures

On April 9, the RBI will announce its MPC decision, which will provide important insights into the central bank’s policy stance and India’s broader economic outlook.

Next week, the US Federal Open Market Committee (FOMC) meeting minutes, US CPI data, and UK GDP data will impact international markets.

Global Factors Impacting Market Performance

Internationally, the US Federal Open Market Committee (FOMC) meeting minutes, US CPI data, and UK GDP data will be released next week.

These global economic updates could influence market direction and investor sentiment, particularly in light of ongoing trade tensions.

The Indian equity markets closed the week on a negative note, breaking a two-week winning streak as escalating global trade tensions impacted investor confidence.

The Sensex dropped 2.65% to settle at 75,364.69, while the Nifty fell by 2.61% to end at 22,904.45.

Sectoral Performance: IT And Metal Stocks Hit Hard

On the sectoral front, investors heavily sold IT and Metal stocks, making them the worst performers of the week.

IT stocks plunged by 9.15%, while Metal stocks fell by 7.46%. In contrast, the FMCG sector saw modest gains, rising 0.45%, reflecting defensive buying amid the market’s volatility.

US Tariff Decisions Trigger Market Volatility

US President Donald Trump’s decision to impose steep reciprocal tariffs on key trading partners, including a 27% levy on certain Indian goods, largely triggered the sharp market downturn.

This move heightened fears of a global trade war, rattling investor sentiment.

Foreign And Domestic Institutional Investors React

Foreign Institutional Investors (FIIs) became aggressive sellers during the week, pulling out approximately Rs 13,730 crore from the cash segment.

On the other hand, Domestic Institutional Investors (DIIs) provided some support, with net inflows of around Rs 5,632 crore.

Market Outlook: Caution Advised Amid Global Trade Concerns

Puneet Singhania, Director at Master Trust Group, noted that the Nifty 50 has slipped to a two-week low, weighed down by fears of a global trade war and recession, which have contributed to negative market sentiment.

He advised traders to watch key support levels at 22,300 and 22,000, while the 22,800 level now acts as strong resistance.

Singhania cautioned that, in the current environment, the Nifty may become a ‘sell-on-rise’ market, advising traders to avoid aggressive long positions until stability returns to the global and domestic markets.

As the markets face heightened volatility, investors will need to closely monitor both domestic economic data and global developments, especially regarding trade tensions, as they navigate through the upcoming week.

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