Due to ongoing FII selling pressure, Indian markets open flat.
When US Treasury rates reached three-month highs, the market adopted a cautious approach.
Tuesday’s opening of Indian benchmark indexes was flat, with the Sensex beginning at 81,155.08 and the Nifty at 24,798.65. The market was impacted by worries over FII selling and increasing US Treasury rates.
According to Vikas Jain, Head of Research at Reliance Securities, “this month, foreign institutional investors were net sellers of over ₹80,000 crore—one of the highest levels in four years.” On October 21, domestic institutional investors purchased stocks worth ₹3,225 crore, while FIIs sold stocks for ₹2,261 crore.
Infosys was the top gainer on the NSE in early trade, up 1.20 percent, followed by ICICI Bank at 1.12 percent. With Tata Steel falling 1.66 percent and becoming the biggest loss, the metal industry was under pressure. “The mid-cap and small-cap indices saw a steep decline of up to 2 percent in the broader market,” stated Prashanth Tapse, Senior VP (Research) at Mehta Equities.
As long as the Nifty stays within a certain range, technical experts remain wary. According to Ameya Ranadive, Senior Technical Analyst at StoxBox, “the 24750-24650 zone continues to act as an immediate support zone.” Kotak Securities’ Shrikant Chouhan noted that the 24700 and 80900 levels are important support levels and cautioned that “selling pressure might intensify if these levels are breached.”
While U.S. markets ended the previous day down, Asian markets had varied tendencies. Global markets received some assistance from the Chinese central bank’s interest rate drop, although this was somewhat offset by ongoing worries about U.S. Treasury yields.
Crude oil prices showed indications of recovery, while gold prices reached all-time highs before leveling off. According to Rahul Kalantri, VP of Commodities at Mehta Equities, “gold first surged after Russian President Vladimir Putin suggested a new payment system for BRICS countries.”
Market players watch for key businesses like ICICI Prudential, Zomato, and Bajaj Finance to release their quarterly earnings. In its October Bulletin, the RBI lowered its second-quarter prediction by 20 basis points to 6.8%, but still predicted real GDP growth of 7.2 percent for fiscal year 2024–2025.
Strong domestic economic growth and steady oil prices were cited by Jain as reasons why the current market fall would be a good time for long-term investors to buy.
Do you own any PSU equities where FIIs boosted their holdings by as much as 2.9% in Q2?
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