Markets are bracing for a quiet opening, with GIFT Nifty signaling only a slight uptick, as investor nerves remain frayed after Foreign Institutional Investors (FIIs) sold equities worth over Rs 10,000 crore for the second day running. The mood is cautious, with Wall Street’s overnight losses adding to the cautious sentiment and raising questions about whether the Nifty and Sensex will continue their losing streak for a fourth straight session.
Global cues have turned slightly sour, and the combination of persistent foreign selling and a tepid earnings season in India’s markets is giving traders little reason to cheer. The key benchmarks may tread water or dip, at least until fresh catalysts emerge.
How GIFT Nifty Sets the Tone for Today’s Trade
At 7:10 am, the GIFT Nifty was hovering at 24,799.5, up just 25 points or about 0.1%. That’s barely a blip — suggesting a day that’s more about holding ground than making bold moves. This muted start reflects the undercurrents of caution swirling around the market.
Foreign investors have been heavy sellers lately. Tuesday saw FIIs offloading Rs 10,016 crore worth of stocks, following a similar wave of selling the day before. Their exit is hitting Indian equities hard, creating pressure on the Nifty and Sensex.
Wall Street, which usually has a big influence on Dalal Street’s mood, added to the gloom. After six straight days of gains, the S&P 500 pulled back, with all three major U.S. indices closing lower: Dow Jones slipped 0.27%, Nasdaq lost 0.4%, and S&P 500 dropped 0.4%. The tech rally that had powered much of the recent gains sputtered.
It’s a classic case of markets taking a breather after a strong run. But the timing couldn’t be worse for India’s markets that are already jittery.
Mixed Global Markets Add to India’s Uncertainty
Asian markets gave a bit of a mixed signal. The KOSPI index in South Korea led gains, rallying nearly 1%, while the Hang Seng in Hong Kong rose by 0.5%. Australia’s markets also showed some strength.
Japan’s Nikkei 225 and Topix index were less decisive — gains trimmed from earlier highs to just hover above flat. It’s as if investors there are holding their breath, waiting to see what happens next.
This global patchiness means India’s markets may struggle to find clear direction.
Earnings Season Adds Pressure on Investor Sentiment
If that wasn’t enough, earnings season hasn’t exactly been a boon for confidence. Weak corporate results have cast a shadow over the market, dimming hopes for a rebound in the near term.
For a market that’s been reliant on earnings growth to push valuations higher, the slowdown is frustrating investors. Without strong earnings, foreign investors seem less inclined to stay put or pour money in.
The sentiment seems to be: Why hold when the outlook is murky?
Looking Ahead: Will the Slide Continue?
The big question on everyone’s mind: Will Nifty and Sensex extend their losses for the fourth session? It’s tough to say, but all signs point to continued caution.
Traders will be watching closely for fresh triggers — maybe government reforms, policy announcements, or an unexpected global development — to shake things up.
For now, though, it looks like a day of treading water or slight dips. The Rs 10,000 crore foreign sell-off is a weight too heavy to shrug off easily.
Some quick facts:
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FII selling this week totals over Rs 20,000 crore.
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The last time foreign investors sold this aggressively was during the market turmoil in late 2024.
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India’s 500 GW renewable energy target by 2030 remains a bright spot, but hasn’t yet translated into market gains.
Table: Key Indices Overnight Performance
| Index | Change % |
|---|---|
| Dow Jones | -0.27% |
| Nasdaq Composite | -0.4% |
| S&P 500 | -0.4% |
| KOSPI | +0.99% |
| Hang Seng | +0.5% |
| Nikkei 225 | +0.1% |
Is there a silver lining? Perhaps. India’s domestic demand and government push for infrastructure and green energy remain positives. But until foreign investors turn bullish again, the market is likely to keep its cautious stance.
