Indian equity markets are likely to open on a cautious note on Friday. Gift Nifty 24,285 signals that Nifty could open with a gap down of about 150 points.
Ponmudi R, CEO of Enrich Money, said Indian equity markets are expected to remain cautious and highly sensitive to news flow, as escalating geopolitical tensions in the Middle East continue to weigh heavily on investor sentiment despite periodic relief rallies. “The latest exchange of fire between the U.S. and Iran near the Strait of Hormuz has further heightened uncertainty, even as Donald Trump called on Tehran to accept the U.S. proposal and reiterated that Washington does “not seek escalation”. The contrast between military confrontation and diplomatic messaging has kept investors on edge, curbing risk appetite and reinforcing a defensive undertone across global financial markets,” it added.
Emkay remains constructive on Indian equities
Emkay Global Research said it remains constructive on Indian equities, as it expects broad macro and earnings growth to recover once the Iran war ends. “That theme is back in play after reports of a peace deal coming through in days. Even if it is another false start, we believe the war will end, and Hormuz will reopen within weeks, and are hence positioning the portfolio for that. We retain our Mar-27 Nifty target of 29,000, as we expect earnings growth to accelerate in FY27 (14% for Nifty). We change three stocks in our model portfolio, but the positioning remains unchanged, with Discretionary and Industrials the key OW sectors.”
Foreign investors continue heavy selling in Indian markets
Meanwhile, foreign portfolio investors continue their selling spree. According to JM Financial, in Apr’26, FIIs were net sellers to the tune of Rs 68,870 crore ($7.3 billion), while the Nifty rose 7.5 per cent, MoM, after a 11.3 per cent fall in Mar’26. “FIIs remained net sellers in Apr’26 following record net selling in Mar’26, which marked the highest monthly net FII outflow in absolute terms. The primary market posted net FII inflows of Rs 2,300 crore (versus inflows of Rs 3,000 crore in March 2026), whereas the secondary market saw net FII outflows of Rs 71,200 crore (versus outflows of Rs 1,29,200 crore in March 2026).
FII ownership as a percentage of total Indian equities has fallen from 19.9 per cent in Apr’16 to 14.7 per cent in April 2026—its lowest level since Jun’12. DII ownership as a percentage of total Indian equities has risen over the years, reaching 18.9 per cent in March 2026.