Domestic markets are anticipated to open on a flat note on Wednesday, reflecting a cautious sentiment among investors. The Gift Nifty at 25,185 indicates a marginally negative opening amid weak global cues.
Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, commented, “Gift Nifty is indicating a flat opening. US benchmark indices retreated overnight from record highs as profit booking emerged, further pressured by Federal Reserve Chair Jerome Powell’s remarks about stretched valuations of risk assets. His cautionary stance has heightened risk aversion, prompting investors to seek safe-haven assets.”
Analysts predict that the market will experience volatility, influenced by mixed signals from the US. They also noted that ongoing selling by foreign portfolio investors would contribute to market uncertainty. However, domestic institutional support may lead to stock-specific movements.
Ponmudi R, CEO of Enrich Money, observed that foreign investors sold ₹3,551 crore in cash equities on September 23, while domestic institutions absorbed ₹2,671 crore, underscoring the strength of local liquidity. In the derivatives segment, foreign institutional investors (FIIs) added ₹407 crore in index futures and a notable ₹8,105 crore in index options, indicating hedging actions rather than outright exits. Despite FIIs selling over ₹17,000 crore in cash equities this month, domestic institutional investors (DIIs) have countered this with inflows exceeding ₹43,000 crore. Notably, FIIs maintain long derivative positions valued at nearly ₹86,000 crore, suggesting confidence in broader market trends despite reduced stock exposure.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, noted, “Derivatives data reflects a cautious undertone as call writers have established aggressive positions that outpace put writers. The concurrent buildup in both call and put positions at near-the-money strikes reveals indecision among market participants, signaling a likely range-bound movement in the near term. The Put-Call Ratio (PCR) increased to 0.86 from 0.57, but the sentiment remains bearish, indicating that sellers still dominate market flow.”
Meanwhile, stocks across the Asia-Pacific region are performing mixed.
Published on September 24, 2025
