Indian equity markets are expected to experience volatility this week due to global trade uncertainties and foreign investor outflows, according to analysts. In February, the BSE Sensex and NSE Nifty saw significant declines, dropping by 5.55% and 5.88% respectively, as US tariff threats and weak global sentiment affected investor confidence. Experts believe that the markets could gradually stabilize as corporate earnings improve in Q1 FY26 and trade policy uncertainties ease. The upcoming PMI data from HSBC and US jobless claims will be closely watched for further indications. Despite GDP growth rebounding to 6.2% in the December quarter, slightly below the RBI’s forecast, foreign institutional investors have been selling off their holdings, adding to market pressure. However, analysts suggest that there may be a temporary relief rally due to oversold conditions, although the overall trend is expected to remain weak in the short term.
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