Foreign investors are apparently cautious amid risks of the potential return of Covid, besides looming global recession worries as flagged by various agencies.
The subdued market sentiment is due to the possibility of slowing global economic growth this year and the latest pulling out of funds by foreign portfolio investors (FPIs) from Indian stocks.
Foreign portfolio investors have sold assets worth about Rs 17,237 crore in Indian stock markets so far in 2023, the latest data from National Securities Depository showed.
Indian stocks opened the new week's trade marginally higher but concerns over slowing global economic growth continue to remain on the investors' mind.
Indian stock indices have extended losses for the second straight session, largely due to continued selling by foreign investors on concerns over higher stock valuations.
TCS, among the Nifty 50 companies, was the top loser this morning. It declined over 2 per cent. Analysts attribute the decline to less-than-estimated earnings during the October-December quarter.
The positive outlook for 2023 is despite concerns emanating from the global slowdown and a possible recession in the Western economies due to the unwinding of monetary policy by central banks.
The US Federal Reserve officials believe it would not be "appropriate" to begin loosening monetary policy stance in terms of interest rate in 2023, Minutes from the latest policy meeting held on December 13-14 showed.
Bulls dominated the Indian stock markets on the very first session of the year 2023 as the benchmark indices - Sensex and Nifty - closed on a positive note.
Foreign portfolio investors (FPIs) have infused funds worth Rs 11,119 crore in Indian stock markets in the month of December and became net buyers for the second straight month, data from National Securities Depository showed.