New Delhi, Apr 28 (BNP): Indian equity markets began Tuesday’s session on a cautious note, with benchmark indices slipping in early trade amid continued foreign institutional investor (FII) outflows, firm crude oil prices, and lingering geopolitical tensions in West Asia.
The Nifty 50 opened lower at 24,049.90, down 42.80 points (0.18%), while the BSE Sensex declined 208.84 points (0.27%) to start at 77,094.79.
Market participants pointed to a mix of global and domestic pressures influencing investor sentiment. Persistent FII selling has remained a key drag, as global capital continues to shift toward markets benefiting from strong momentum, particularly those driven by advances in Artificial Intelligence.
Analysts note that global equity trends—especially record highs in major U.S. indices and strong gains in Asian markets like South Korea—have diverted portfolio flows away from India. However, they caution that such momentum-driven trends may not be permanent, with the possibility of a correction in overheated sectors potentially redirecting investments back to Indian equities.
Sectorally, the market showed a mixed trend in early trade. Defensive segments such as FMCG and IT stocks posted modest gains, while pharma and PSU banking stocks remained under pressure. Metal and media stocks also saw selective buying interest.
Investor attention is also focused on ongoing corporate earnings announcements, with several major companies set to report their quarterly results. These earnings are expected to provide further cues on market direction in the near term.
Meanwhile, elevated crude oil prices continue to pose a concern for the domestic economy. Brent crude hovered around $109 per barrel, raising fears of inflationary pressures and potential impacts on economic growth.
Global cues remained mixed, with uncertainty surrounding developments in West Asia—including tensions linked to the Strait of Hormuz—keeping markets on edge. Asian equities reflected this caution, with some indices trading lower while others posted marginal gains.
Overall, analysts expect Indian markets to remain volatile in the near term, driven by geopolitical developments, commodity price movements, and the trajectory of foreign capital flows.
