March 10, 2025 – Indian equity markets ended the day modestly lower as benchmark indices succumbed to profit booking and ongoing global uncertainties. In the cash market, Foreign Institutional Investors (FIIs) continued their cautious stance, offloading shares, while Domestic Institutional Investors (DIIs) partially offset the selling pressure.
Market Performance Overview
The Nifty 50 dipped by 0.4%, closing at 22,360.50, and the BSE Sensex slid by 0.35% to finish at 73,950.25. Early gains in certain sectors were eroded as investors booked profits in heavyweight segments like IT and FMCG, amid mounting concerns over global trade tensions and geopolitical risks.
Sectoral Highlights
- Information Technology (IT): The Nifty IT index declined by approximately 0.8%. Ongoing global demand uncertainties and persistent tariff-related worries pushed investors to lock in gains.
- Automobiles: The auto sector registered a modest gain of 0.5%, supported by optimism over resilient domestic demand and favorable industry forecasts.
- Metals: Metal stocks performed strongly, rising by around 1.4%, buoyed by an improved global commodity outlook and better-than-expected industrial demand.
- Oil & Gas: This sector edged up by 1.1%, with stable crude prices and solid export figures underpinning the gains.
- Banking: Private and PSU banks experienced mild declines due to profit booking, reflecting subdued sentiment despite expectations of steady credit growth.
- FMCG: FMCG stocks also faced pressure as investors realized gains from recent rallies, contributing to the broader market pullback.
FII and DII Cash Market Activity
In the cash market, institutional flows were a significant driver of today’s session:
- FIIs were net sellers, offloading equities worth ₹2,150 crore. This sizeable offload underscores the risk-averse stance amid persistent global uncertainties.
- DIIs stepped in as net buyers, absorbing shares worth ₹2,480 crore, which helped cushion the impact of FII selling and provided some support to the indices.
Commodities Market Update
- Gold prices remained firm, with 24-carat gold trading at ₹87,750 per 10 grams, as investors sought safe-haven assets in light of global economic concerns.
- Silver prices held relatively steady, settling at approximately ₹97,850 per kilogram, influenced by minor fluctuations in industrial demand.
Global Cues and Key Upcoming Events
Global markets continued to exhibit cautious sentiment, with trade tensions and geopolitical risks weighing on investor confidence. Additionally, market participants are closely watching the upcoming Indian Consumer Price Index (CPI) data announcement, expected to provide critical insights into domestic inflation trends and inform future monetary policy. Any significant deviation from expectations in the CPI figures could further impact market sentiment. Moreover, investors remain alert to further developments in U.S. trade policy and the Federal Reserve’s commentary on economic prospects, factors that could have cascading effects on emerging markets like India.
Outlook
Although DIIs provided partial support through cash market buying, overall investor sentiment remains guarded. With global uncertainties persisting and profit booking ongoing, market volatility is likely to continue in the near term. Investors are advised to stay alert to both domestic indicators like the CPI data and global economic developments, as these factors will be crucial in shaping future market trends.
Today’s session underscored the delicate balance between domestic profit booking and institutional flows in the cash market, set against a backdrop of global and domestic economic cues.