SGX Nifty December 2025 futures declined by 339 points (or 1.46%) in early trading, indicating a sluggish start for the Nifty 50 today.
Institutional Flows:
On 20 March 2026, provisional data indicated that foreign portfolio investors (FPIs) divested shares amounting to Rs 10,414.23 crore, whereas domestic institutional investors (DIIs) recorded net purchases totaling Rs 12,033.97 crore in the Indian equity market. Foreign Institutional Investors have divested shares amounting to Rs 97,195.12 crore in March (up to 20 March 2026). This follows their cash sales of Rs 6,640.78 crore in February and Rs 41,435.22 crore in January 2026.
Global Markets:
Asian markets experienced a notable increase on Tuesday, driven by indications of de-escalation in the Middle East conflict, which contributed to a moderation in oil prices. The gains followed a statement from U.S. President Donald Trump on Monday, indicating that he had directed the U.S. military to postpone scheduled strikes on Iran’s power plants and energy facilities for a duration of five days, subsequent to discussions with Iranian officials. The recent development instilled optimism among investors regarding the potential resolution of the Middle East conflict, which had previously driven oil prices higher and heightened concerns about a global recession. Nonetheless, Iranian state media, referencing an unnamed senior security official in a Telegram post, contested Trump’s narrative, asserting that no discussions had occurred between Washington and Tehran. Meanwhile, Japan’s Nikkei 225 and the Topix indices recorded notable gains following a fourth consecutive month of easing in the country’s headline inflation rate in February, as the economy showed signs of cooling due to stabilizing food prices and fuel subsidies.
The consumer price index decreased to 1.3% last month, as reported. This figure represents the lowest level since March 2022 and falls short of the central bank’s 2% target, down from 1.5% in January. In the U.S. overnight, equities experienced a rally following President Donald Trump’s announcement regarding discussions between the U.S. and Iran. The Dow Jones Industrial Average experienced an increase of 631 points, representing a rise of 1.38%, concluding the session at 46,208.47. The S&P 500 experienced an increase of 1.15%, concluding at 6,581.00, whereas the Nasdaq Composite saw a rise of 1.38%, finishing at 21,946.76.
Domestic Market:
The domestic equity benchmarks concluded the day with significant losses on Monday, influenced by heightened tensions between the US and Iran, increasing crude oil prices, and a depreciating rupee, all of which adversely impacted investor sentiment. Following a robust recovery on Friday, markets commenced with a gap-down and experienced persistent selling pressure throughout the session, with the Nifty momentarily dipping below the 22,500 threshold intraday for the first time since 9 April 2025, ultimately closing beneath 22,550.
The decline was widespread, primarily driven by consumer durables and metal stocks, in the context of weak global indicators and ongoing foreign fund outflows, indicative of increased risk aversion. The S&P BSE Sensex declined by 1,836.57 points, representing a decrease of 2.46%, closing at 72,696.39. The Nifty 50 index experienced a decline of 601.85 points, representing a decrease of 2.60%, closing at 22,512.65.