Indian Market Outlook: Tariff Updates, FII Activity & Global Trends

New Delhi, Mar 23 (PTI) Global trends, tariff-related updates and trading activity of foreign investors would be the key drivers for the equity market movement this week, analysts said.

Markets witnessed a strong rebound last week, with the benchmark indices surging over 4 per cent.

The rally was fuelled by improving investor sentiment, improvement in foreign capital flows, and positive global developments, an expert said.

"We expect this upward momentum to continue, on the back of foreign institutional investors' return to the Indian market amid attractive valuations and signs of economic recovery," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Investors would also track the rupee-dollar trend and movement in global oil benchmark Brent crude, an analyst noted.

"With no major domestic economic events scheduled, focus will remain on the expiry of March derivatives contracts and FII activity. On the global front, the US markets will be closely watched, with tariff-related updates and GDP growth data expected to influence investor sentiment.

"Although US markets saw a temporary respite after a sharp decline, mixed signals suggest potential volatility in the coming sessions," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Last week, the BSE benchmark gauge surged 3,076.6 points or 4.16 per cent, and the Nifty jumped 953.2 points or 4.25 per cent.

"The domestic market has concluded the week with consistent recovery. The anticipated reduction in risk-free rates, coupled with the correction in the dollar index, are facilitating fund flows back to EMs. FIIs, whose selling activity has been waning, are becoming net buyers, driven by dovish signals from the US Fed, which suggest the possibility of two rate cuts this year. This has reignited optimism in the domestic market," Vinod Nair, Head of Research, Geojit Financial Services, said.

Foreign Institutional Investors (FIIs) bought equities worth Rs 3,239.14 crore on Thursday, according to exchange data. On Friday also, FIIs bought equities worth Rs 7,470.36 crore.