Nifty, Sensex open under pressure amid weak rupee, FPI outflows

Mumbai Share Market Opens Weakly Amid Falling Rupee and FPI Outflows

The domestic share market in Mumbai faced a challenging start on Tuesday as both benchmark indices, the Nifty 50 and BSE Sensex, slipped into negative territory. The market experts pointed out that the falling rupee and continued foreign portfolio investor (FPI) outflows were primarily responsible for the decline.

Key Market Indices

• The Nifty 50 index opened at 26,146.00, marking a decline of -29.75 points (-0.11 per cent).
• The BSE Sensex started the session at 85,523.17, down -118.73 points or -0.14 per cent.

Market Experts Weigh In

Ajay Bagga, a Banking and Market Expert, attributed the market's decline to the lagging impact of GDP and poor nominal GDP print, which was exacerbated by the falling Indian rupee. He also highlighted the intense promoter selling, massive IPO pipeline, and continued FPI outflows as factors contributing to the market's weakness.

Broader Market Trend

In the broader market, a mixed trend was observed on the NSE. The Nifty Smallcap index traded in the red, while the Nifty Midcap index surged by more than 0.32 per cent, indicating positive momentum in midcap stocks despite the overall weak sentiment.

Sectoral Indices

• Nifty Media declined 0.49 per cent.
• Nifty Private Bank lost 0.28 per cent.
• Nifty Auto was up 0.29 per cent.
• Nifty FMCG gained 0.30 per cent.
• Nifty IT was higher by 0.22 per cent.
• Nifty Pharma also rose 0.27 per cent.

Short-Term Outlook

Ponmudi R, CEO of Enrich Money, noted that Nifty 50 continues to consolidate just below its record highs, which he described as "healthy digestion after a strong rally." He also highlighted that a bearish candle on the daily chart indicates short-term hesitation but the broader trend remains positive as long as the index stays above the 20-DEMA near 25,950.

He added that immediate support lies in the 26,100-26,000 zone, while resistance is placed at 26,200-26,325. A decisive move above 26,300 could reignite upside momentum toward 26,500 and higher.