LGT Wealth India’s CIO Rajesh Cheruvu believes markets will stabilize once panic selling subsides. Despite volatility, Nifty valuations are below the five-year average, suggesting a potential bottom. Midcap and smallcap indices have entered a bear market, with sharp corrections.

Economic slowdown fears in the U.S. intensify as trade war escalations and tariff hikes fuel market volatility. The Nasdaq enters correction territory, while the Federal Reserve revises GDP forecasts downward, increasing recession concerns. Analysts warn of further economic contraction.

The stock market’s five-month decline tests investors resilience. Lessons from India’s Champions Trophy win highlight the importance of large-cap stability, all-round stocks, reassessing portfolios, and strategic patience—key strategies to navigate bearish phases and emerge stronger in market recoveries.

Investors in Sovereign Gold Bond (SGB) 2016-17 Series IV have gained 193%, with gold prices soaring from Rs 2,943 to Rs 8,624 per gram. The final redemption date is March 17, 2025, with premature redemption available for the 2019-20 Series IV.

The euro gained on Friday after German parties agreed on a fiscal deal that boosts defence spending and infrastructure. The dollar weakened against the euro but strengthened against the Swiss franc and the yen. U.S. inflation expectations rose, hinting at the Federal Reserve s cautious approach to rate cuts. The pound weakened as the British economy contracted.

Indian equities have fallen 20% since October 2024, eroding foreign funds equity assets under custody. Mauritius and Canada saw the steepest 25% drop, while Norway faced a 14% decline. FPIs have sold ₹3 lakh crore, impacting midcaps and smallcaps significantly.

The rupee closed at 87.01 per US dollar, gaining 20 paise amid easing inflation. CPI inflation fell to 3.61% in February, raising expectations of deeper rate cuts. Market sentiment remained cautious, with last-hour dollar buying capping gains.

The Reserve Bank of India s foreign exchange reserves increased by $15 billion in the week ending March 7, reaching $653.9 billion. This is the largest single-week gain in over two years. The rise was due to the revaluation in the dollar index and foreign exchange swaps by the RBI. Foreign currency assets and gold reserves also saw increases.

Mutual funds sold heavily across 10 sectors in February, with NBFCs seeing ₹33,114M in outflows. Other impacted sectors include ports, logistics, PSU banks, and telecom. Top stocks sold included Bajaj Finance, Adani Ports, and Bharti Airtel, while select stocks saw buying.

U.S. stock markets are volatile due to Trump s fluctuating tariff policies, with the Federal Reserve meeting in the coming week. Investors seek hints about future interest rate cuts to stabilize markets. Recent economic data and inflation reports suggest possible rate cuts later this year, driving up market bets on easing policies. All eyes on Fed Chair Powell s comments.