Market Pauses for Good Friday: Institutional Sell-off Shadows Weekly Rebound**

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Market Snapshot

As the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) remained shut today for Good Friday, investors are reflecting on a turbulent week. In the final trading session on April 2, the BSE Sensex closed at 73,319.55, up 185.23 points (0.25%), while the Nifty 50 ended at 22,713.10, gaining 33.70 points (0.15%). Despite this late-week bounce led by the IT sector, the broader market indices recorded a weekly loss of approximately 1.5% to 2.5%, marking the sixth consecutive week of bearish performance.

Institutional Flows: Cash Market

No fresh provisional data was generated for April 03, 2026, due to the market holiday. However, the latest provisional figures from the preceding session on April 2 reveal a stark divergence in institutional activity:

• Foreign Institutional Investors (FIIs): Net sellers of ₹9,931.13 crore. This massive exit reflects heightened global risk aversion as investors pull capital from emerging markets.
• Domestic Institutional Investors (DIIs): Net buyers of ₹7,208.41 crore. Domestic funds continue to act as a crucial shock absorber, partially offsetting the aggressive FII liquidation.

Derivatives Market Activity

Trading in equity derivatives was suspended today. In the previous session, the market witnessed significant volatility with the India VIX surging above the 25 mark, indicating an environment of high fear and uncertainty.

• Nifty Futures: Closed marginally higher on Thursday, though open interest suggested a cautious "sell on rise" approach among traders.
• Put-Call Ratio (PCR): The PCR remained in the bearish zone (around 0.79), signaling that market participants are heavily hedged against further downsides.
• F&O Holiday: All weekly and monthly contracts remained inactive today, with settlement cycles expected to resume on Monday, April 6.

Key Drivers and Outlook

The market outlook remains "headline-driven" as participants brace for a critical week ahead. Several factors are expected to dictate the opening on Monday:

• Geopolitical Tensions: The ongoing conflict between the U.S. and Iran in West Asia remains the primary concern. Recent rhetoric from Washington has dampened hopes for a swift de-escalation, keeping crude oil prices elevated.
• Rupee and RBI: The Indian Rupee saw a historic single-day recovery on Thursday following RBI intervention to curb speculation. Traders will watch if the currency can sustain levels below 93/$ to provide relief to importers.
• Q4 Earnings Season: With Wipro and other IT majors set to announce results in mid-April, the focus is shifting toward corporate earnings and management guidance for FY27.
• Inflation Data: Investors are awaiting upcoming domestic inflation prints to gauge the RBI’s next move in the monetary policy committee (MPC) meeting.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: ** FII DII Stock Market Institutional Investors Nifty Sensex