Indian stock markets likely to open on a flat note

28 May 2024 , 08:43 AM

The benchmark Sensex and Nifty indices are expected to open flat to negative on May 28, with GIFT Nifty trends indicating a potential 14-point decline for the broader index.

Previous Session Recap

The record-setting momentum on Dalal Street continued as the benchmark indices reached new all-time highs, driven by strong buying interest in realty, banking, and information technology stocks. However, a wave of selling in the final hour of trading erased the day’s gains. By the close, the Sensex had declined by 19.89 points, or 0.03%, settling at 75,390.50. Similarly, the Nifty fell by 24.65 points, or 0.11%, ending the session at 22,932.45.

Market Trends and Influences

Asian markets remained range-bound on Tuesday as investors digested comments from European Central Bank (ECB) officials suggesting that rate cuts might be forthcoming for the eurozone. This cautious sentiment influenced trading patterns across Asian markets.

In the United States, markets were closed due to the Memorial Day holiday.

Institutional Flows

On May 27, foreign institutional investors (FIIs) turned net sellers, offloading Indian equities worth ₹541.22 Crore. In contrast, domestic institutional investors (DIIs) were net buyers, purchasing ₹922.6 Crore worth of equities. This divergence highlights differing outlooks between foreign and domestic investors regarding the Indian market’s prospects.

Given the current global and domestic indicators, the Sensex and Nifty are expected to open on a subdued note.