- The BSE Sensex ended the month and financial year at 71,947.55 (down 11.49% MoM) and the Nifty 50 at 22,331.40 (down 11.31%), marking a fourth consecutive monthly decline amid sharp late-week selling, driven by a weakening Indian Rupee, elevated Brent Crude prices, and sustained FPI outflows linked to rising Middle East tensions.
- Banking stocks fell after the Reserve Bank of India capped banks’ forex exposure at $100 million, triggering unwinding of positions and pressuring sentiment.
- The India VIX jumped to ~28, nearly 2x its normal range of 12–15, indicating a steep rise in expected market volatility over the next 30 days.
- Foreign Portfolio Investors (FPIs) recorded net outflows of ₹1,17,775 crore in March, while their equity assets declined by $79 billion to $710 billion in just a fortnight marking the sharpest drop in over 6 years.
- The Indian Rupee depreciated by 0.5% in a single session to hit a record low of 95.23/USD, amplifying FPI outflows and increasing imported inflation risks.
- The March F&O expiry triggered additional volatility, with sharp intraday swings of 1–2% as traders unwound positions and rolled over contracts to the next series.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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