Why are Indian markets showing scepticism despite a rebound?

Markets are showing scepticism due to unease and uncertainty stemming from the ongoing conflict in West Asia, making the recent rebound an 'unloved rally'.

What is the impact of foreign institutional selling on the market?

Foreign institutional investors have continued their selling spree, withdrawing ₹16,400 crore in the last three trading sessions, contributing to market caution.

What factors are influencing the durability of the current market rally?

The durability of the rally is influenced by the need for respite on the war front, clarity on geopolitical outcomes, and foreign institutional investor sentiment.

Home / Business and Economy / Markets Skid: Scepticism Greets Unloved Rally

Markets Skid: Scepticism Greets Unloved Rally

19 Mar

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Summary

Markets show scepticism despite a three-day rebound after a March sell-off.
Foreign institutional investors pulled out ₹16,400 crore in three sessions.
Market experts doubt the rally's durability without war front clarity.

Markets Skid: Scepticism Greets Unloved Rally

Indian equity markets are navigating a cautious rebound after a significant sell-off that began in early March. This three-day recovery, marked by scepticism, has seen indices recover up to 2.9% from their recent lows. The market's unease stems from the ongoing conflict in West Asia, which initially spooked investors and led to a roughly 8.3% drop in major indices.

Analysts describe the current bounce as potentially a 'dead cat bounce,' questioning its durability. Factors contributing to this sentiment include persistent foreign institutional selling, with overseas funds withdrawing approximately ₹16,400 crore over the last three trading sessions. This outflow contributes to a March selling tally nearing ₹75,000 crore, the highest since January 2025.