Indian Markets Brace for Volatility Amid Global Uncertainty

Domestic equities are poised for a flat to negative opening as cautious sentiment prevails among investors. The Gift Nifty, trading at 25,185, signals mild bearishness following overnight weakness in US markets. Federal Reserve Chair Jerome Powell's warning about stretched asset valuations triggered a risk-off mood, pulling benchmark indices from record highs.

Foreign portfolio investors remain net sellers, offloading ₹3,551 crore in cash equities on September 23. Domestic institutions provided a counterbalance with ₹2,671 crore in inflows. Derivatives activity suggests hedging rather than outright exits—FIIs added ₹407 crore in index futures and ₹8,105 crore in index options. The month has seen FIIs dump over ₹17,000 crore in cash equities, while DIIs injected ₹43,000 crore.

Market analysts anticipate continued volatility as conflicting signals emerge from global markets. "The Fed's cautionary tone has revived demand for SAFE havens," noted Hariprasad K of Livelong Wealth. Ponmudi R from Enrich Money observed: "Local liquidity remains robust, but unabated FII selling keeps markets on edge." Stock-specific action is expected to dominate with institutional support.