SGX Nifty March 2026 futures declined by 46.00 points, indicating a sluggish start for the Nifty 50 today.

Institutional Flows:

On 04 March 2026, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 8,752.65 crore, whereas domestic institutional investors (DIIs) made net purchases totaling Rs 12,068.17 crore in the Indian equity market. The foreign institutional investors have divested shares amounting to Rs 12,048.29 crore in March (up to 04 March 2026). This comes after their cash sales of Rs 6,640.78 crore in February and Rs 41,435.22 crore in January 2026.

Global Markets:

On Thursday, the Asian market experienced an uptick, recovering from a series of significant declines as investor sentiment brightened after positive movements on Wall Street and diminishing worries regarding rising oil prices. South Korea’s Kospi surged more than 12%, marking a significant recovery from its lowest point observed on Wednesday. According to reports, the recovery in South Korea’s stock market was significantly influenced by a reversal of leveraged selling. A series of margin calls from retail investors led to significant selling earlier in the week; however, as those positions were resolved, the market started to bounce back, according to the reports.

Other media reports indicated that the sell-off was primarily influenced by the potential upward pressure on oil prices due to the changing geopolitical landscape. Given South Korea’s status as a significant crude oil importer, the unpredictability of potential oil price increases could impact the current account balance and contribute to inflationary pressures. On Wednesday, U.S. Treasury Secretary Scott Bessent indicated that Washington plans to implement a range of measures to stabilize oil shipments through the Persian Gulf, suggesting that the government is ready to intervene as geopolitical tensions pose a risk to one of the globe’s essential energy routes.

China’s significant policy gathering known as the “Two Sessions,” which commenced on Wednesday, stayed in the spotlight for investors. China has reportedly established its GDP growth target for 2026 at 4.5% to 5%, marking the lowest target on record since the early 1990s, as Beijing contends with ongoing deflationary pressures and trade tensions with the United States. Beijing maintained its budget deficit target at “around 4%” of GDP, consistent with last year’s figure.

Overnight in the U.S., stocks increased, continuing the momentum observed late in the previous session, as the spike in oil prices receded following updates on the U.S.-Israeli conflict regarding Iran and concerns about a slowdown in U.S. economic growth diminished. The Dow Jones Industrial Average increased by 238.14 points, representing a rise of 0.49%, finishing at 48,739.41. The 30-stock index ended its three-day streak of losses. The S&P 500 increased by 0.78%, closing at 6,869.50, whereas the Nasdaq Composite rose by 1.29%, finishing at 22,807.48.

Domestic Market:

The domestic equity benchmarks closed significantly down on Wednesday as investors became more cautious in response to rising geopolitical tensions and a notable increase in crude oil prices. The current situation involving the United States, Israel, and Iran has created turbulence in global markets, with the reported closure of the Strait of Hormuz driving oil prices upward, heightening worries about inflation and energy expenses. Market sentiment faced additional pressure due to significant selling by foreign institutional investors, alongside the rupee reaching an all-time low.

In this context, the Nifty ended the day beneath the 24,500 threshold. Except for the Nifty IT index, all other sectoral indices on the NSE closed lower, with declines led by metal, PSU bank, and oil & gas stocks. The S&P BSE Sensex dropped 1,122.66 points, reflecting a decline of 1.40%, closing at 79,116.19. The Nifty 50 index fell by 385.20 points, reflecting a decline of 1.55%, closing at 24,480.50.