Indian Markets See-Saw Amidst Global Bond Turbulence

The Indian stock indices began with minimal movement on Friday, reflecting instability chiefly due to erratic foreign portfolio investor (FPI) actions. The Nifty 50 index opened marginally higher, while the BSE Sensex started slightly down, highlighting a market wrestling with external uncertainties.

According to experts, the instability mainly stems from disruptions in the global bond markets. FPIs are vacillating, purchasing equities one day and divesting the next, adding a layer of unpredictability to the Indian market. Banking and Market Expert Ajay Bagga explained that foreign investors are unsettled by global bond fluctuations, with some pre-emptively withdrawing, overshadowing domestic growth drivers. Bagga anticipates Indian markets could gain once international sentiments stabilize.

Despite the lukewarm opening, broader market indices thrived. The Nifty Next 50, Financial Services index, and several sectoral indices showed gains. Specific sectors like FMCG, IT, and Auto contributed positively. Leading gainers included Grasim and ITC, although Sun Pharma and others saw declines. Institutionally, foreign investors withdrew significant sums, while domestic investors made notable purchases, all amidst global fiscal shifts influencing investor sentiment.

(With inputs from agencies.)