Nifty, Sensex open flat amid FPI volatility; sectoral indices in green except Pharma, Healthcare

MUMBAI: Indian benchmark indices opened flat on Friday, showing signs of volatility mainly due to uncertain foreign portfolio investor (FPI) activity.

The Nifty 50 index opened at 24,639.50, gaining 29.80 points or 0.12 per cent. On the other hand, the BSE Sensex opened slightly lower at 80,896.51, down by 55.48 points or 0.07 per cent.

Experts said the current volatility in the market is largely due to turmoil in the global bond markets. FPIs are frequently changing their stance, buying equities on one day and selling them the next, adding to the uncertainty in Indian markets.

Ajay Bagga Banking and Market Expert told ANI “Indian markets are seeing a huge volatility in FPI flows, with large outflows on a day followed by inflows and then again a large chunk of outflows. Clearly the FPIs are rattled by the global bond market turmoil and some are withdrawing in advance. That is an overhang on a market that is benefitting from multiple domestic tail winds. As the global sentiment improves, we can expect Indian markets to benefit from a domestic focus”.’

Despite the overall flat start, broader market indices were in the green. The Nifty Next 50 rose by 0.18 per cent, and the Financial Services index also edged up by 0.06 per cent. The Nifty Bank index opened flat but stayed in the green, while both Nifty Midcap and Nifty Smallcap indices were trading positively.

Among sectoral indices, all except Nifty Pharma and Nifty Healthcare opened with gains. Nifty Auto gained 0.29 per cent, Nifty FMCG was up by 0.76 per cent, and Nifty IT rose 0.16 per cent. Nifty Media was also in the green, gaining 0.1 per cent. Nifty Metal added 0.28 per cent during the opening session.

Top gainers in the opening session included Grasim, Trent, ITC, BEL, and SBI Life. On the other hand, top losers were Sun Pharma, Dr Reddy, M&M, Titan, ONGC, and Cipla.

In stock-specific updates, Grasim reported a 9.2 per cent year-on-year rise in Q4 FY25 profit to Rs 1,495.9 crore. Sun Pharma’s revenue for FY25 went up by 8.4 per cent to Rs 52,578.4 crore.

On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 5,045 crore in the cash market on May 22, while domestic institutional investors (DIIs) bought equities worth Rs 3,715 crore.

Globally, the passage of the US tax and spending bill has given a push to key economic policies under Trump’s second term. However, the resulting impact on fiscal deficit and rising long-term bond yields has added to market nervousness. Experts believe this situation will settle once markets fully absorb the implications. (ANI)