Mumbai (Maharashtra) [India], April 28 (ANI): The share markets in the country opened on a cautious note on Tuesday, with benchmark indices witnessing marginal declines amid continued foreign institutional investor (FII) selling, elevated crude oil prices, and ongoing geopolitical uncertainty in West Asia.

The Nifty 50 index opened at 24,049.90, declining by 42.80 points or 0.18 per cent, while the BSE Sensex started the session at 77,094.79, down by 208.84 points or 0.27 per cent.

Market experts attributed the subdued sentiment to persistent global factors and shifting investor preferences.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted the underlying reasons behind sustained FII outflows from India.

'It is important to understand the principal reason behind sustained FII selling in India. India underperformed hugely in 2025, and this trend is continuing in 2026, too. S&P 500 set new records this year. Kospi is up 55 per cent YTD while Nifty is down 7.8 per cent YTD. The principal reason behind this underperformance is the booming AI trade, which began in 2025 and is continuing this year. A few AI stocks are driving this AI trade globally. Bulk of portfolio flows are hot money that chase momentum. So long as this market momentum continues, FIIs are likely to continue selling,' he said.

He further noted, 'But dominant market trends are temporary. There are strong views that there is a bubble in AI stocks. So there can be a correction in this segment at any time. That can be a trigger for the resumption of portfolio flows into India. Investors should watch out for this trend. When that happens, fairly-valued largecaps will outperform. Till then, the mid and smallcaps which don't have significant FII exposure may continue to outperform.'

On the sectoral front, a mixed trend was observed in early trade on the NSE. Pharma and PSU bank stocks remained under pressure, while select sectors showed resilience. Nifty FMCG edged up by 0.11 per cent, Nifty IT gained 0.24 per cent, Nifty Media rose 0.38 per cent, and Nifty Metal advanced 0.27 per cent.

Investors are also keeping a close watch on corporate earnings, with several companies scheduled to announce their fourth-quarter results for FY26 on Tuesday. These include Maruti Suzuki India, Dalmia Bharat, Star Health & Allied Insurance Company, Go Digit General Insurance, Bandhan, and Motherson Sumi Wiring India.

Ponmudi R, CEO of Enrich Money, said market sentiment is likely to remain fragile in the near term due to global and domestic uncertainties.

'Indian equity markets are expected to remain cautious and highly sensitive to news flow, shaped by a mix of geopolitical developments and domestic factors. Elevated crude oil prices continue to be a key concern, with Brent trading in the USD 106-110 per barrel range, adding to inflationary pressures and weighing on sentiment. Global cues remain mixed. Developments in U.S.-Iran relations, including discussions around proposals to reopen the Strait of Hormuz, have provided intermittent relief but have not materially reduced uncertainty,' he said.

Crude oil prices continued to remain elevated, with Brent trading at USD 109 per barrel at the time of filing this report, adding to concerns over inflation and economic stability.

Meanwhile, Asian markets presented a mixed picture on Tuesday. Japan's Nikkei 225 index declined by 0.94 per cent to 59,970, while Singapore's Straits Times gained 0.26 per cent to 4,905. Hong Kong's Hang Seng index fell 0.73 per cent to 25,738, whereas Taiwan's weighted index rose 0.35 per cent to 39,756. South Korea's Kospi surged 0.98 per cent to 6,679, reflecting mixed sentiment across regional markets. (ANI)