Indian indices look set for a rebound on Wednesday, with GIFT Nifty indicating a positive opening. While foreign investors have been selling, domestic support remains strong as oil prices slide toward $98. Investors will watch how this stability plays out against the backdrop of US bond yields and local institutional buying.
Indian stock markets are expected to see a positive opening on Wednesday, September 23, 2026, as the GIFT Nifty points toward a start at 23,344.50. This potential recovery comes after domestic benchmarks lost their four-day winning streak during a volatile trading session on Tuesday.
Institutional Dynamics and Market Support
One of the most important trends for investors to understand is the current tug-of-war between foreign and domestic money. On September 22, Foreign Institutional Investors (FIIs) sold ₹3,810 crore worth of equities. Despite this, Domestic Institutional Investors (DIIs) acted as a support pillar, buying ₹4,120 crore. This active participation from domestic institutions has provided a critical cushion for the market, helping to offset the selling pressure that recently hit sectors like Information Technology, PSU Banks, and oil and gas.
Global Cues and Energy Prices
Global sentiment is currently offering a tailwind for domestic equities. A major positive factor is the recent slide in crude oil prices, with Brent crude moving toward $98 a barrel. Lower energy costs generally benefit India's oil-import-dependent economy. Additionally, Asian markets are seeing a boost, largely driven by a strong performance from major global chipmakers, which has helped improve investor confidence across the region.
Risks from US Yields and Currency
While the immediate outlook for the opening is positive, investors are keeping a close watch on the US fixed-income space. The US 10-year Treasury yield is hovering at 4.96%. High yields in the US often draw capital away from emerging markets, which creates pressure on equity sentiment. At the same time, the US dollar index, which measures the strength of the dollar against a basket of currencies, is at 100.58. The interaction between these yields and currency movements will be a key factor in determining how foreign investors behave in the coming days. Investors may continue to track whether domestic buying remains strong enough to balance the ongoing foreign selling trend, as well as any further updates on energy prices that could affect inflationary expectations.