Navigating the Current Stock Market Landscape Amidst FII Outflows

The Indian stock market is currently in a phase where positive news seem to have little impact on investor sentiment. Despite favourable developments such as the Reserve Bank of India’s recent rate cut—the first in two years—and a substantial Income Tax reduction aimed at boosting consumption by approximately ₹1 lakh crore, the markets have remained largely unresponsive. Additionally, the RBI’s decision to lower the risk weightage for non-banking financial companies (NBFCs) from 125 per cent to 100 per cent – a move beneficial to the financial sector – has not led to an anticipated market uplift.