Sensex, Nifty in green despite FPI outflows; SEBI order could weigh on derivatives

Indian stock markets opened slightly higher despite foreign investor outflows. Nifty 50 gained 0.11% and Sensex rose 0.12%. Experts cite outflows, oversupply of IPOs, and promoter stake sales as factors impacting market liquidity.

Indian stock markets opened in the green on Friday, with both benchmark indices witnessing modest gains despite continued foreign portfolio investor (FPI) outflows. The Nifty 50 index was trading at 25,433.95, up by 28.65 points or 0.11 per cent, while the BSE Sensex stood at 83,340.22, gaining 100.75 points or 0.12 per cent in the opening session.

Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets are seeing consistent FPI outflows this week, and the net FPI short positions have also gone up. The 105-page SEBI interim order barring Jane Street group entities from the Indian securities markets will be watched for a market-moving impact on derivatives volumes and volatility both.”

He further added, “Overall Indian markets are in a consolidation phase, with an oversupply of both IPOs and promoters selling their stakes sucking out liquidity from the secondary markets. Trump tariffs and earnings numbers will determine the direction of the markets going ahead.”

In the broader market indices on the NSE, Nifty 100 was up by 0.04 per cent. However, the Nifty Midcap 100 declined by 0.06 per cent, and the Nifty Smallcap 100 slipped by 0.20 per cent, indicating mixed trends in mid and small-cap stocks.

Among sectoral indices on the NSE, Nifty Auto, Nifty Metal, and Nifty Pharma were under pressure. On the other hand, Nifty FMCG gained 0.38 per cent and Nifty Media rose by 0.39 per cent at the time of filing this report.

Markets are also closely watching the July 9th tariff deadline. If the deadline is not extended, it could result in major movement across global markets.

As of June, the average tariffs on goods imported into the US reached 15 per cent. According to available data till May, the average tariffs stood at 8.8 per cent, marking the highest level since 1946.

US tariff revenues surged almost fourfold from a year earlier to a record USD 24.2 billion in May, the first full month of President Donald Trump's 10 per cent global tariff implementation.

Imports from China dropped sharply to USD 19.3 billion, down 43 per cent from the same month in 2024, bringing Chinese goods destined for US domestic consumption to the lowest level in 19 years. However, the overall value of US imports from all countries remained unchanged.