Indian shares set for flat open as foreign outflows offset Asian gains

Indian stocks are poised for a subdued opening on Wednesday as persistent outflows from foreign funds counterbalance the positive momentum from Asian markets, with lingering concerns over the Middle East conflict clouding investor sentiment. As of 7:49 a.m. IST, GIFT Nifty futures were hovering at 23,343 points, signaling a flat start for the Nifty 50 index, which ended Tuesday at 23,329.

Asian equities are on track for a sixth straight day of gains, buoyed by consumer confidence in AI-driven applications. MSCI’s Asia-Pacific index, excluding Japan, climbed 0.7%. However, foreign investors are still steering clear of Indian stocks, with net sales to the region totaling 38.1 billion rupees ($398.58 million) on Tuesday alone, marking an eighth consecutive day of selling over the past nine trading sessions.

In September, overseas traders have offloaded $1.81 billion worth of Indian shares, adding to year-to-date outflows of $25.87 billion. Meanwhile, Brent crude futures settled around $99 per barrel, unchanged due to heightened Gulf supplies and aspirations for a diplomatic resolution to the US-Iran conflict. US President Donald Trump threatened to "annihilate" Iran, yet also indicated that his advisors Steve Witkoff and Jared Kushner had achieved fruitful discussions with Iranian mediators to bring an end to the war.

India's Nifty 50 and BSE Sensex are down more than 3% each this month, reflecting worries about the potential impact of the Iran war on global inflation and interest rates.