Equity benchmarks opened on a subdued note on Tuesday despite strong overnight gains in global markets, with persistent foreign institutional investor (FII) selling and weakness in banking stocks weighing on sentiment. The BSE Sensex opened at 83,671.52 against its previous close of 83,535.35, but quickly slipped to 83,347.50 by 10:01 am, down 187.85 points or 0.22 per cent. The Nifty 50 opened at 25,617.00 compared to the previous close of 25,574.35, before declining to 25,514.85, losing 59.50 points or 0.23 per cent.
“Indian markets opened on a cautious note today. The Nifty 50 began the session slightly above 25,600, supported by overnight strength in U.S. equities after the Senate advanced a bill to end the historic government shutdown,” said Ponmudi R, CEO of Enrich Money. “However, early gains were quickly capped near 25,650–25,700, as intraday profit-booking dragged the index back below 25,550, with persistent foreign investor selling and continued weakness in the Indian rupee tempering early optimism.”
The decline came despite a strong rally in global markets, with the Nasdaq surging 2.2 per cent and adding over $1 trillion in market value overnight. The optimism was triggered by U.S. President Donald Trump’s remarks indicating that a U.S.-India trade deal is in its final stages, which analysts believe could benefit export-oriented sectors.
Banking and financial services stocks were the biggest laggards, with Bajaj Finance plunging 6.82 per cent to ₹1,011.00 and Bajaj Finserv declining 6.53 per cent to ₹1,979.90. Shriram Finance dropped 1.38 per cent to ₹809.80, while Jio Financial Services fell 1.28 per cent to ₹298.10. The Bank Nifty opened marginally positive near 57,960 but traded within a narrow band of 57,820-58,080.
On the gaining side, defence stocks led the pack with Bharat Electronics Limited (BEL) surging 1.42 per cent to ₹422.75. Bharti Airtel advanced 1.11 per cent to ₹2,042.30, while IndiGo gained 0.92 per cent to ₹5,640.00. Among technology stocks, HCL Technologies rose 0.68 per cent to ₹1,551.00, benefiting from the positive momentum in the AI trade globally.
“The AI trade which was weak last week has again bounced back with 2.2 per cent gain in Nasdaq,” noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “While there is concern that the return from AI stocks will take much longer-than-expected presently, it is a fact that there is no bubble yet in AI stocks, particularly when compared to the Tech bubble which crashed in 2000.”
Foreign Institutional Investors remained net sellers on November 10, offloading equities worth ₹4,114 crore, marking continued pressure on the market. However, Domestic Institutional Investors provided support by purchasing equities worth over ₹5,805 crore.
“Technically, strength will emerge only above 25,807, with 25,653 acting as a key hurdle, suggesting a range-bound move with a mild negative bias before potential recovery at lower levels,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
In commodities, gold and silver hit three-week highs, with expectations of a resolution to the U.S. government shutdown and growing anticipation of rate cuts in the December Federal Reserve meeting supporting the rally. Crude oil prices edged higher, supported by optimism over the potential U.S. shutdown resolution.
Analysts recommended a cautious buy-on-dips approach given the prevailing volatility and mixed global backdrop, with fresh long positions advisable only if the Nifty sustains above 26,100.