Sensex, Nifty 50 Set for Flat Start Amid Mixed Global Cues and FII Selling Pressure

Monday, July 21: Indian equity markets are anticipated to open flat today, 21 July 2025, reflecting a cautious investor sentiment amid a mixed bag of global indicators.

FIIs Extend Selling Spree While DIIs Continue Buying

On 18 July, Foreign Institutional Investors (FIIs) continued their selling spree for the second consecutive session, offloading equities worth ₹3,694 crore. This sustained outflow suggests a prevailing cautious stance by foreign investors. In contrast,

Domestic Institutional Investors (DIIs) maintained their buying streak for the ninth straight session, injecting ₹2,820 crore into the equities market. This continued DII support has been a key factor in providing some resilience to the Indian markets amidst FII selling.

Indian Markets Tumble to One-Month Lows

On 18 July, Indian benchmark indices extended their losses for a second consecutive session. The Nifty 50 slipped below the crucial 25,000 mark, closing at 24,968.40, marking a one-month low.

Broad-based sectoral declines were observed across the board, with the exception of the metals and media sectors, which showed some strength. The BSE Sensex also experienced a notable drop, falling 501.51 points to close at 81,757.73. Midcap and smallcap indices mirrored the broader market decline, each shedding 0.6%.

GIFT Nifty Update: Hovers Below 25,000, Signals Weak Start

As of 8:30 AM IST, GIFT Nifty was trading at 24,984.50, down 37 points or 0.15% from its previous close of 25,021.50. This performance suggests a likely soft start for the domestic markets. The intraday range for GIFT Nifty was between 24,987.00 and 25,042.50.

The dip below the 25,000 mark on GIFT Nifty reflects continued investor caution amid global uncertainty and ongoing FII selling pressure, indicating that the Nifty 50 and Sensex may open with limited upward momentum.

Mixed Trends Across Global Markets

US Markets End Flat: Wall Street concluded Friday’s trading session nearly unchanged. The S&P 500 saw a marginal loss of 0.01%, while the Nasdaq Composite recorded a slight gain of 0.05%. The Dow Jones Industrial Average dropped 0.32%, reflecting investor caution, reportedly influenced by news of President Donald Trump potentially pushing for new EU tariffs.

Asian Markets Hold Steady: Asian equities displayed mixed trends in early trading today, following the recent Japanese elections. The Topix index fell 1.16%, while South Korea’s Kospi rose by 0.53%. The Japanese Yen led gains among Asian currencies, supported by strength in the Philippine Peso and Thai Baht. Japanese markets are closed today for the Marine Day holiday.

Commodities and Currency Indicators

• US Treasury Yields: Fell by 4 basis points in early trade, indicating a cautious sentiment in the bond market.
• Dollar Index: Traded slightly lower at 98.45, suggesting some weakening of the US dollar against major currencies.
• Crude Oil: Prices edged higher, driven by ongoing concerns over potential EU sanctions on Russian oil and reports of rising Middle East supply, which could impact global energy costs.
• Gold: Remained steady as traders assessed mixed signals from US Federal Reserve officials regarding the inflation implications of trade tariffs.

Summary Outlook

The Indian equity markets are poised for a flat opening, primarily influenced by a cautious global environment and continued selling by FIIs. While Domestic Institutional Investors are providing crucial support, global volatility and muted cues from the GIFT Nifty are likely to keep the benchmark indices range-bound at the open. Investors are expected to tread cautiously as the earnings season progresses and various macroeconomic developments unfold.

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