India’s benchmark index NSE Nifty 50 is set to open marginally higher on Monday, after posting its longest monthly losing run since 1996 in February, as an uptick in domestic growth eased some investor worries.
Data on Friday showed India’s economy expanded by 6.2% in the October-December quarter, picking up on increased government and consumer spending.
The GIFT Nifty futures were trading at 22,353 as of 07:56 a.m. IST, indicating that the blue-chip Nifty 50 will open above Friday’s close of 22,124.7.
Worries over domestic growth and U.S. tariffs pushed the Nifty and BSE Sensex down 16% and 15% from record highs hit in September, while the broader small- and mid-caps have fallen more than 20% from their all-time highs, confirming a bear market.
Domestic equities have been seeing sustained foreign outflows amid the concerns, coming off their rich valuations.
Foreign portfolio investors (FPIs) sold 116.39 billion ($1.33 billion) worth of Indian shares on Friday, the highest single-day selling in three months, as per provisional data.
While the growth data is a positive for sentiment, much of the optimism is offset by global trade uncertainty, analysts said.
Indian shares seen opening marginally higher
“There would have been a reason to celebrate if were not for the global impact led by Trump’s tariff policies,” said Bernstein, adding while it offers “a matter of relief, there is no single factor becoming too dominant to direct markets.”
Both Nifty and BSE Sensex fell 1.9% on Friday, slipping to nine-month lows.
Asian markets dithered on Monday, with the MSCI Asia ex Japan flat, as the threat of imminent tariffs lurked in the background.
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