After four straight days of losses, India's Nifty 50 index is set to open higher on Wednesday, but lingering foreign fund outflows may keep gains modest.
Market Outlook
Gift Nifty futures were trading around 26,116 points at 7:40 a.m. IST, suggesting the Nifty 50 will start above Tuesday’s close of 25,938.85. The index has slipped about 1% over the last four sessions as foreign investors kept selling.
Why Foreign Funds Are Pulling Out
On Tuesday, foreign investors sold Indian shares worth ₹38.44 billion (≈ $428 million). So far in 2025, they have exited Indian equities for a total of $18.5 billion, a record outflow year. This pressure has caused Indian stocks to under‑perform compared with other emerging‑market peers.
What Could Change the Trend?
- The upcoming quarterly earnings season is expected to boost market sentiment.
- Analysts note that earnings growth should pick up in 2026, potentially reversing the outflow‑driven weakness.
Despite the recent sell‑off, the Nifty 50 is still up 9.7% year‑to‑date, marking its 10th consecutive year of gains.
Stocks to Watch
- Bharat Forge secured its largest small‑arms contract with the Ministry of Defence, valued at ₹16.62 billion.
- IndiGo faces a tax demand of ₹4.58 billion from the GST department related to compensation from a foreign supplier and denial of input tax credit.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.