Foreign portfolio investors turned net sellers of equity after staying buyers for three sessions, according to reports from Essential Business Intelligence. This reversal came as benchmark indices ended the session marginally lower on Tuesday, with Nifty at 23,618, down 0.14%, and Sensex at 75,200.85, lower by 0.15%. The FPIs offloaded stake worth ₹2,457 crore during the session, while domestic institutional investors remained net buyers for the second consecutive day, purchasing shares worth ₹3,802 crore. The selling pressure comes as markets face resistance near the 23,800 level, with analysts noting that the index continues to consolidate within a narrow range over the past five sessions.
According to technical analysts, the Indian equity benchmarks remain largely range-bound as market sentiment fails to show decisive direction. Sudeep Shah from SBI Securities noted that on the daily chart, Nifty formed a small-bodied candle, indicating lack of strong conviction from both bulls and bears. Nandish Shah from HDFC Securities echoed similar views, highlighting that Nifty continues to consolidate within a narrow range, with the index facing immediate resistance near 23,800 and support in the 23,480-23,450 zone. Pre-market indicator GIFT Nifty was trading 0.02% lower as of 10 p.m. IST, while Bank Nifty remained range-bound within a narrow range of 433 points, marking its lowest daily range since February 2026.
According to data from NSDL, FPIs have sold shares worth ₹35,962 crore in January, followed by buying worth ₹22,615 crore in February aided by improving risk sentiment. However, escalating tensions in the Middle East amid the US-Iran war rattled global risk sentiment, pushing FPIs to turn net sellers. Last week, FPIs offloaded total stake worth ₹13,584 crore, while domestic institutional investors bought stake worth ₹18,524 crore. The current selling pressure reflects ongoing geopolitical uncertainties that continue to impact foreign investor sentiment toward Indian equities.
Despite broader market weakness, Nifty IT emerged as the top sectoral gainer, rising over 3%, driven by stocks like Coforge and Infosys. Broader markets outperformed with Nifty Midcap 150 rising over 0.5% and Smallcap 250 gaining more than 1%, snapping two-day declines. However, analysts expect the broader sentiment for the index to remain weak going ahead, with the 53,900-54,000 zone likely to act as immediate resistance for Bank Nifty, while the 53,100-53,000 zone is expected to provide crucial support.
