India equity benchmarks set for muted start on persistent foreign outflows

India’s equity benchmarks are likely to open little changed on Tuesday as investors navigate persistent foreign outflows and a depreciating rupee, while a trade deal with the U.S. remains elusive.

The Gift Nifty futures were trading at 26,035 points as of 7:51 a.m. IST, indicating that the benchmark Nifty 50 will open near Monday’s close of 26,027.3.

The Nifty 50 and Sensex have been wavering over the last two weeks after hitting their record highs on December 1, due to lack of major triggers and continued wait for a India-U.S. trade deal.

Foreign portfolio investors sold shares worth 14.68 billion rupees ($161.6 million) on Monday, marking their seventh consecutive session of selling, provisional data showed.

The FPI selling was accompanies by a weak rupee, which has hit fresh record lows for three straight sessions.

On the other hand, domestic institutional investors bought 17.92 billion rupees worth of stocks on Monday. They have been net buyers in every session since October 23, cushioning the market from FPI outflows.

Investors are waiting for an update about the India-U.S. trade negotiations, with analysts saying that hopes for a deal before year end appear to be dimming.

India’s trade secretary said on Monday that the two countries were close to a “framework deal”, without giving any timeline. Last week, India’s chief economic advisor said that a trade deal, is likely only by March.