GIFT Nifty indicates muted start for equities; Powell flags 'overvaluation' in equities

GIFT Nifty:

GIFT Nifty September 2025 futures were trading with a cut of 35.00 points (or 0.14%) in early trade, suggesting that the Nifty 50 could start on a muted note today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 3,551.19 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,670.87 crore in the Indian equity market on 23 September 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 17,032.93 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asian markets declined on Wednesday, mirroring losses on Wall Street after U.S. Federal Reserve Chair Jerome Powell remarked that equity prices were ?fairly highly valued.?

He also cautioned that the path for future rate cuts remained uncertain, describing the situation as challenging.?

Overnight in the U.S., all three major indices ended lower. The S&P 500 slipped 0.55% to 6,656.92, retreating after hitting a fresh intraday high and a record close earlier in the week, as concerns grew over the durability of the artificial intelligence rally.

The Nasdaq Composite dropped nearly 1% to 22,573.47, weighed down by declines in AI-related stocks such as Nvidia, Oracle, and Amazon. Meanwhile, the Dow Jones Industrial Average edged down 88.76 points, or 0.19%, to close at 46,292.78.

Domestic Market:

The domestic equity benchmarks ended with minor losses on Tuesday, marking their third straight session of decline. Concerns over a proposed H-1B visa fee hike and uncertainty in India-US trade talks weighed on sentiment.

The Nifty settled below the 25,200 mark after a rangebound session, with PSU banks, metals and auto stocks finding buyers while FMCG and IT shares came under pressure. Broader indices underperformed, reflecting cautious sentiment as small- and mid-cap stocks lagged.

Meanwhile, the rupee slipped to a record low amid persistent foreign fund outflows and trade deficit worries, while global uncertainties and prospects of a US Fed rate cut lifted gold prices.

On the domestic front, robust output from the eight core industries offered some support, highlighting resilience in the economy despite external challenges.

The S&P BSE Sensex shed 57.87 points or 0.07% to 82,102.10. The Nifty 50 index lost 32.85 points or 0.13% to 25,169.50. In three sessions, the Sensex is down 1.09% and the Nifty has corrected 0.99%.

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