India’s benchmark indices opened lower on Wednesday as continued selling pressure from foreign institutional investors (FIIs) weighed on the market.
The Nifty 50 fell by 48.80 points, or 0.19%, to 25,008.55, while the Sensex dropped 173 points, or 0.21%, to 81,646.
Despite foreign outflows, domestic institutional investors (DIIs) stepped in to support the market, helping Nifty hold above the critical 25,000 mark.
“The primary driver of the bull run in India has been sustained domestic flows, which have absorbed the selling from FIIs. While domestic flows will continue to support the market, high valuations could limit further gains,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Nifty is likely to consolidate around the 25,000 level. We expect Q2 earnings to be weak, except in sectors like IT, banking, and parts of the auto industry,” he added.
Sectorally, most indices declined, except for Nifty Pharma, Nifty Realty, and Nifty Consumer Durables. Among Nifty 50 stocks, 17 gained, 31 declined, and two remained unchanged.
Shriram Subramanian, Founder and MD of InGovern Research Services, said, “The market will likely stay sluggish with a downward bias as global investors shift funds to China. The upcoming Hyundai IPO and Reliance Industries results will also weigh on leading indices.”
Across Asian markets, a mixed trend was observed. Japan’s Nikkei dropped over 2%, while Hong Kong’s Hang Seng gained 0.4%. South Korea’s KOSPI and Taiwan’s Weighted Index both saw declines of 0.5% and 0.6%, respectively.
(With ANI input)