New Delhi, April 12 (ANI): Indian stock markets are expected to witness volatility when trading resumes on Monday, as investor sentiment reacts to the failure of U.S.-Iran negotiations, which ended without an agreement.
U.S. Vice President JD Vance said that while substantive discussions took place, the absence of a deal was “bad news for Iran more than it is for the United States of America.”
According to Ponmudi R, CEO of Enrich Money, overall market sentiment remains “balanced but cautious,” with limited downside but constrained upside momentum.
Foreign institutional investors (FIIs) have been net sellers, with cumulative weekly outflows exceeding Rs 20,700 crore, although they turned net buyers during Friday’s session, he noted.
“A renewed escalation in tensions or a sharp rebound in oil prices could reintroduce downside risks. Conversely, continued moderation in crude prices, along with supportive global cues, may trigger short covering and provide near-term support to markets,” Ponmudi R said.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said foreign portfolio investor (FPI) selling has continued in April, with total outflows reaching Rs 1,90,046 crore.
He attributed the trend to the energy crisis triggered by the West Asia conflict, concerns about its potential impact on the Indian economy, and sustained depreciation of the rupee.
Experts noted that if tensions ease and crude prices decline significantly, India’s macroeconomic fundamentals may remain largely unaffected. However, a prolonged conflict could weigh on the economy and deter FPIs from returning as buyers.
Domestic institutional investors have provided crucial support, with net inflows of Rs 21,600 crore, helping stabilize markets near key support levels.
Vijayakumar added that strong mutual fund inflows, including equity inflows of Rs 40,450 crore and monthly SIP contributions of Rs 32,087 crore in March, are positive indicators for market resilience. (ANI)
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