Indian shares set to open higher after record sell-off
The Nifty 50 is expected to rebound on Monday after foreign investors offloaded 211.06 billion rupees of shares during Friday's MSCI index rebalancing. Market focus remains on U.S.-Iran peace talks and domestic policy changes including reduced fuel export duties and scrapped cotton import taxes.
India equity futures rose Monday morning, signaling a rebound after record foreign outflows triggered a 1.5% drop in the Nifty 50. GIFT Nifty futures reached 23,726, indicating the benchmark will open above its previous close of 23,547.75. Volatility spiked as index rebalancing drove massive turnover in Mumbai.
### Record Turnover Follows MSCI Rebalancing Foreign investors sold 211.06 billion rupees ($2.22 billion) worth of shares on Friday, marking a record one-day exit. This selling coincided with the MSCI May index rebalancing, which took effect at around 3:00 p.m. IST on Friday. Analysts expected the rejig to spark approximately $870 million in outflows from Indian equities.
