Eid Break for Indian Markets as Asia Faces Sell-Off; All Eyes on Trump’s Tariff Rollout

With Indian stock exchanges shut for Eid-ul-Fitr, Asian markets plunged on Monday amid fears over impending U.S. tariffs, while foreign investors continued to offload Indian equities for a third straight month.

Mumbai, March 31: Indian stock markets remained closed on Monday in observance of Eid-ul-Fitr, but while the Dalal Street took a breather, major Asian indices reeled under sharp selling pressure. Concerns over U.S. President Donald Trump’s upcoming tariff policy weighed heavily on investor sentiment across the region.

As of market hours, Japan’s Nikkei 225 had plunged nearly 4%, Taiwan’s Weighted Index dropped by 2.97%, and South Korea’s benchmark index slid more than 2.5%, signaling a broader regional sell-off. Investors across Asia appear jittery ahead of the April 2 implementation of new U.S. tariffs, which are already sending ripples through global markets.

Back home in India, markets closed lower on Friday ahead of the long weekend. The Nifty slipped 72 points to end at 23,519, while the Sensex lost 0.25% to settle at 77,414.

Adding to the domestic concerns is the continued withdrawal of funds by Foreign Portfolio Investors (FPIs). March marked the third consecutive month of net outflows from Indian equities, with FPIs selling stocks worth ₹3,973 crore, according to data from the National Securities Depository Limited (NSDL). This follows massive sell-offs of ₹78,027 crore in January and ₹34,574 crore in February.

The exodus of FPI money, which had previously powered market rallies, has slowed in the latter half of March. Despite Friday’s dip, market expert Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, believes the fiscal year closed on a positive note.

“Despite a weak finish, the strong recovery in the latter half of March—driven by FPI inflows—helped key indices end FY2025 with notable gains,” Gurjar said.

He further noted that Nifty is currently trading between key resistance and support levels, with 23,800 acting as a crucial barrier. “A breakout above this resistance would suggest a continuation of the uptrend. Technical indicators also point toward bullish momentum as prices remain above all key moving averages,” he added.

With Indian markets set to reopen on Tuesday, all eyes will be on how they digest the global cues and brace for the tariff tremors ahead.