Indian Markets Open Steady as Domestic Investors Offset FPI Outflows
Indian markets open flat amid caution; DIIs counter FPI outflows
Image: Asianet Newsable
Indian benchmark indices opened flat on Wednesday, with the BSE Sensex at 75,948.49 and the NSE Nifty 50 at 23,878.10. Domestic institutional investors are stabilizing the market amid foreign portfolio investor outflows and rising fiscal concerns, as tax revenue falls due to fuel price cuts.
- 01The BSE Sensex opened at 75,948.49, down 61.21 points or 0.08%.
- 02Domestic institutional investors (DIIs) are providing crucial support against foreign selling, helping stabilize the Nifty 50.
- 03The Indian government has forgone nearly ₹14,000 crore in tax revenue due to recent excise duty cuts on fuel.
- 04Fiscal slippage is projected to reach approximately ₹1.1 trillion (or ₹1.1 lakh crore), raising the fiscal deficit to 4.6%-4.7% of GDP.
- 05Key support levels for the Nifty are around 23,850-23,875, with potential resistance at 24,100.
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On Wednesday, Indian benchmark indices opened flat, with the BSE Sensex at 75,948.49 and the NSE Nifty 50 at 23,878.10. This stability comes despite ongoing foreign portfolio investor (FPI) outflows, as domestic institutional investors (DIIs) and retail SIP inflows continue to provide crucial support. Banking expert Ajay Bagga noted that these inflows have helped prevent the Nifty from dropping significantly below 23,500. However, rising fiscal concerns are evident, with the government having forgone nearly ₹14,000 crore in tax revenue following excise duty cuts on fuel. Bagga warned of a potential fiscal slippage of about ₹1.1 trillion, which could increase the fiscal deficit to 4.6%-4.7% of GDP. In the commodities market, crude oil and gold prices experienced a decline, while sectoral indices showed mixed performance, with Nifty Metal gaining 1.05%. Technical analysts suggest key support levels for the Nifty around 23,850-23,875.
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The stability of Indian markets is crucial for investors and the economy, especially amid rising fiscal concerns and global uncertainties.
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