The beginning of a new month, and the last one of the fiscal, is unlikely to see a positive beginning for domestic markets. Amid global sell-off, Sensex and Nifty are likely to remain under pressure, analysts said. According to them, any attempt by the benchmarks to recover will encounter higher selling, which would keep the market in a downtrend,

The higher selling by foreign portfolio investors on Tuesday indicates that they are likely to stop their selling anytime soon and one can expect further aggressiveness from them going forward given the global and domestic headwinds, market experts said.

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said. Markets are constantly witnessing selling pressure on back of global uncertainty, consistent FIIs selling and central banks around the world being hawkish to tame rigid inflation.

Nifty ended Feb with a loss of 2 per cent – its 3rd consecutive month of decline. Overall cautiousness is likely to remain,” he added.

SGX Nifty at 17,376 indicates a gap down opening of about 50 points, as NIfty futures on Tuesday closed at 17,403. Asian stocks are mixed with most ruling in the green except Japan.

Meanwhile, experts will try to analyze the mixed economic data. While GDP number came at 4.4 per cent, weaker-than-expected, January core output data at 7.8 per cent is four-month high.

Nikhil Gupta, Chief Economist, MOFSL group, said: “Contrary to our expectation of ~4.5% YoY and Bloomberg consensus of 4.6 per cent YoY, real GDP growth in 3QFY23 came in at 4.4 per cent YoY, v/s 13.2 per cent/ 6.3 per cent YoY in 1Q/2QFY23. (1Q number revised from 13.5%).”

This was on account of collapse in consumption, both private as well as government. Capital formation held up overall GDP growth in Q3, he said.

According to Nish Bhatt, Founder & CEO, of Millwood Kane International – an Investment consulting firm, the data looks optically lower but the fact it is coming on a higher revised base than last year is encouraging.

“Low private consumption has been primarily responsible for the lower GDP print coupled with lower government spending and a contraction in manufacturing. Construction, Realty & Finance, trade, and hotel components provided support to the data,” he said.

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