The Indian stock market struggled to maintain early gains on April 29, 2025, as tepid global cues dampened investor sentiment. The frontline indices, Nifty 50 and Sensex, initially opened on a strong note but lost momentum as the day progressed. Selling pressure weighed heavily on the FMCG and pharma sectors, signaling cautious market sentiment.
Foreign Institutional Investors (FIIs) continued their buying streak, injecting nearly Rs 35,000 crore into Indian equities over the past nine sessions, though it wasn’t enough to keep the market in positive territory. Experts suggest traders adopt a selective stock-picking approach with strict risk management strategies while capitalizing on any short-term opportunities.
Early Gains Fizzled Out Amid Global Uncertainty
The Indian market started the day with optimism, buoyed by foreign investment and some upbeat sentiment in key sectors. At 9:44 AM IST, the Sensex stood at 80,218, up marginally by just 0.12 points. The Nifty 50, however, saw a slight dip, down 2.50 points to 24,326.
Despite positive inflows from FIIs, the broader market was cautious, with 1984 stocks advancing, while 881 stocks saw a decline. This split suggests that while there was some buying interest, broader sentiment remained tempered. Market analysts have pointed to tepid global cues and the recent sell-off in global equities as factors influencing the muted performance.
FMCG and Pharma Sectors See Significant Selling Pressure
The biggest losers in today’s session were the FMCG and pharmaceutical stocks, which saw significant selling pressure. Traders were quick to capitalize on short-term profit-taking opportunities, particularly in sectors that had seen recent rallies. Despite robust demand in certain pockets, FMCG stocks fell victim to broader market weakness.
Pharma stocks, too, were under pressure, with investors wary of possible regulatory hurdles and a slowdown in global demand. The domestic pharmaceutical market faces mounting challenges from pricing regulations, as well as increased competition from international markets. Despite India’s strong standing as a global hub for generic drugs, these sectors remain vulnerable to market sentiment and global policy changes.
Auto Sector Gets a Boost from U.S. Policy Shifts
On a more positive note, the automobile sector saw some cheer, largely due to news from the United States. The Trump administration indicated it would move to reduce tariffs on imported automotive parts used in domestic manufacturing, offering some relief to automakers. This policy shift is expected to reduce costs for companies that rely on foreign parts, including several major players in India’s auto sector.
As a result, automobile stocks experienced some gains in early trade, with investors seeing it as a favorable development. However, the overall impact on the Indian market remained muted, as other sectors struggled to find support. The move could be a temporary boost for Indian auto manufacturers but will depend on broader geopolitical factors and the trajectory of U.S. trade policy.
FII Inflows Remain a Silver Lining
Despite the broad market weakness, the consistent inflow of funds from FIIs remains a key factor in supporting the Indian stock market. FIIs have now invested nearly Rs 35,000 crore into Indian equities over the last nine consecutive sessions, signaling sustained confidence in the long-term growth prospects of the Indian economy.
The ongoing buy-in from foreign investors highlights the attractiveness of Indian equities as a destination for capital, particularly in the context of global uncertainties. However, experts caution that the market remains volatile, and the continuation of these inflows will depend on both global economic conditions and local economic developments, including inflationary pressures and policy reforms.
Investors have been advised to stay selective in their stock picks and remain cautious in the current environment. While the inflows offer some support, the market’s flat performance today underscores the need for a disciplined and focused approach to stock selection.
Experts Advise Caution with a Focus on Risk Management
Market analysts have highlighted the importance of maintaining strict risk management strategies amidst the current market environment. With the global economic outlook uncertain, the Indian market may continue to show periods of volatility.
According to market experts, it’s important for traders to remain cautious and focus on stocks that are fundamentally strong and well-positioned for long-term growth. Tactical plays in specific sectors such as automobiles and technology might offer opportunities, but investors should be ready to act swiftly in the face of changing conditions.
“Stock-picking is key, and traders should be selective in their approach. With global markets under pressure and domestic risks lingering, having a plan in place is essential,” said a senior equity analyst.
