Investor sentiment was also tuned into the second phase of the high-stakes Bihar Assembly elections, adding a layer of domestic political uncertainty to the trading mood.
Key Market Levels at Open
After a rebound in the previous session, the markets witnessed profit-booking in early trade:
The S&P BSE Sensex was trading around 83,250, down approximately 250 points.
The NSE Nifty 50 slipped 80 points to hover near the 25,500 mark.
What's Driving the Market Sentiment?
The trading action is being shaped by two primary factors:
1. Positive Global Cue: Comments from US President Donald Trump suggesting a potential gradual reduction of tariffs on Indian goods provided initial support, keeping the markets "afloat" and preventing a steeper fall.
2. Domestic Event Risk: The ongoing Bihar polls have put a part of the market in a wait-and-watch mode, as the outcome could have implications for national policy direction.
A Look at Global Markets
Asian markets presented a mixed picture, which failed to give a clear direction to Indian equities:
Japan’s Nikkei: Up 0.43% at 51,131
South Korea’s KOSPI: Up a strong 1.48% at 4,133
Hong Kong’s Hang Seng: Down 0.34% at 26,558
China’s Shanghai Composite: Down 0.38% at 4,003
Overnight, Wall Street had a robust session, with the Dow Jones closing 0.81% higher. The tech-heavy Nasdaq surged 2.27%, and the S&P 500 gained 1.54%.
FII/DII Activity: A Story of Divergence
Foreign Institutional Investors (FIIs) continued their selling spree, creating headwinds for the market.
On November 10, FIIs were net sellers, offloading shares worth ₹4,076 crore.
However, Domestic Institutional Investors (DIIs) provided a strong counterbalance, buying shares worth ₹5,811 crore on the same day.
This trend highlights the ongoing tug-of-war between foreign and domestic money. While FPIs showed a positive turn in October with an investment of ₹14,610 crore, September had witnessed massive FII selling of over ₹35,300 crore, which was overwhelmingly absorbed by DII purchases of ₹65,343 crore.
Recap from Monday's Session
The flat-to-negative opening on Tuesday follows a recovery in the previous session. On Monday, both the Sensex and Nifty snapped a three-day losing streak, closing higher by 319 points and 82 points, respectively.
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