Mumbai, April 7 -- Retail and high-net-worth investors (HNI) could bear the brunt of a sharp correction on Monday if the markets were to open as signalled by Gift Nifty's steep drop at closing on Friday.

These market constituents, who have been absorbing foreign investor outflows from India, have significant bullish positions open on Nifty and Bank Nifty derivatives, besides being net buyers on the cash segment, shows exchange data.

The Gift Nifty futures contract, the erstwhile SGX Nifty, traded by foreign investors well after the National Stock Exchange and BSE Ltd shut at 3:30 pm on Friday, signals a 560-point or 2.4% drop when the Nifty opens on Monday.

Read more: Here are the sectoral winners and losers from Trump's reciprocal tar...