New Delhi: The country’s share markets opened cautiously on Tuesday, with benchmark indices witnessing marginal declines amid continued selling by foreign institutional investors (FIIs), rising crude oil prices, and ongoing geopolitical tensions in West Asia.
The Nifty 50 index began the session at 24,049.90, down 42.80 points or 0.18 per cent, while the BSE Sensex opened at 77,094.79, falling by 208.84 points or 0.27 per cent.
Market experts said the muted sentiment was driven by persistent global uncertainties and a shift in investor preferences.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed to key factors behind the continued FII outflows from India.
“It is important to understand the principal reason behind sustained FII selling in India. India underperformed hugely in 2025, and this trend is continuing in 2026, too. S&P 500 set new records this year.
Kospi is up 55 per cent YTD while Nifty is down 7.8 per cent YTD. The principal reason behind this underperformance is the booming AI trade, which began in 2025 and is continuing this year. A few AI stocks are driving this AI trade globally. Bulk of portfolio flows are hot money that chase momentum. So long as this market momentum continues, FIIs are likely to continue selling,” he said.
He further reiterated, “But dominant market trends are temporary. There are strong views that there is a bubble in AI stocks. So there can be a correction in this segment at any time. That can be a trigger for the resumption of portfolio flows into India. Investors should watch out for this trend. When that happens, fairly-valued largecaps will outperform. Till then, the mid and smallcaps which don’t have significant FII exposure may continue to outperform.”
On the sectoral front, early trading on the NSE showed a mixed trend. Pharma and PSU bank stocks were under pressure, while some sectors displayed resilience. Nifty FMCG rose 0.11 per cent, Nifty IT gained 0.24 per cent, Nifty Media climbed 0.38 per cent, and Nifty Metal advanced 0.27 per cent.
Investors are also closely monitoring corporate earnings, with several companies set to announce their fourth-quarter FY26 results on Tuesday. These include Maruti Suzuki India, Dalmia Bharat, Star Health & Allied Insurance Company, Go Digit General Insurance, Bandhan, and Motherson Sumi Wiring India.
Ponmudi R, CEO of Enrich Money, said market sentiment is expected to remain fragile in the near term due to both global and domestic uncertainties.
“Indian equity markets are expected to remain cautious and highly sensitive to news flow, shaped by a mix of geopolitical developments and domestic factors. Elevated crude oil prices continue to be a key concern, with Brent trading in the USD 106-110 per barrel range, adding to inflationary pressures and weighing on sentiment. Global cues remain mixed. Developments in U.S.-Iran relations, including discussions around proposals to reopen the Strait of Hormuz, have provided intermittent relief but have not materially reduced uncertainty,” he said.
Crude oil prices continued to remain elevated, adding to concerns over inflation and economic stability.
Meanwhile, Asian markets showed a mixed trend on Tuesday. Japan’s Nikkei 225 index fell 0.94 per cent to 59,970, while Singapore’s Straits Times rose 0.26 per cent to 4,905. Hong Kong’s Hang Seng index declined 0.73 per cent to 25,738, whereas Taiwan’s weighted index gained 0.35 per cent to 39,756. South Korea’s Kospi jumped 0.98 percent to 6,679, reflecting varied sentiment across the region.
(DD News)