India equity benchmarks set for muted start amid foreign outflows, thin trading volumes

India’s equity benchmarks are likely to open little changed on Wednesday, as foreign fund outflows and thin year-end trading volumes counter optimism over better-than-expected U.S. economic growth data.

The Gift Nifty futures were trading at 26,234 points, as of 7:46 a.m. IST, indicating that the benchmark Nifty 50 would open near Tuesday’s close of 26,177.15.

Asian stocks were up 0.3%, tracking Wall Street’s gains overnight after data showed the U.S. economy grew faster than expected in the third quarter, driven by robust consumer spending.

A strong U.S. gross domestic product reading is positive for Indian information technology and pharma companies, which earn a significant share of their revenue from the world’s largest economy.

Meanwhile, foreign investors sold Indian shares worth 17.95 billion rupees ($200.75 million) on Tuesday, as per provisional data. They have offloaded $1.3 billion so far in December and $17.7 billion in 2025.

Turnover in the cash market on Tuesday was about 9% lower from the previous session and 15% below the average daily turnover in November on the National Stock Exchange of India.

Trading volumes across global markets are usually thin at this time of the year ahead of the Christmas and New Year holidays.