Domestic markets are expected to open flat but with a positive tone on Monday, ahead of the settlement of monthly derivative contracts on the National Stock Exchange (NSE). Market experts indicated that continuous selling by foreign portfolio investors and a weakening rupee may keep the markets cautious. With the earnings season concluded, global sentiment is likely to influence market movements.
The Gift Nifty is currently at 26,185, showing an increase over the Nifty futures (November) close at 26,077 and the December close at 26,269. Analysts anticipate volatile market conditions, particularly in the latter part of the day, as roll-overs of futures and options contracts occur ahead of the November expiry set for Tuesday. Despite the Sensex and Nifty nearing all-time highs, analysts predict that attention will shift toward the broader market.
Puneet Singhania, Director of Master Trust Group, noted that the Indian market’s proximity to all-time highs highlights the resilience of domestic participation and confidence in India’s long-term growth trajectory. He stated, “While the overall domestic scenario remains constructive, some critical global and currency-related factors are restraining meaningful foreign institutional investor (FII) reallocation toward Indian equities.”
Reports indicate that there is currently no distinct trend in FII activity. Although there has been a reduction in sustained selling, foreign investors even turned buyers on certain days in November. The total FII sell figure for November up to the 22nd stood at ₹15,243 crore.
However, the long-term trend shows FII buying through the primary market continues, with investments of ₹11,454 crore recorded so far in November. For 2025, the total FII sell figure through exchanges has reached ₹2,09,444 crore, while total buy figures in the primary market stand at ₹65,747 crore.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, projected that FII selling is likely to taper off as the AI trade subsides and prospects for Indian equities improve. “Corporate earnings in India are expected to gather momentum going into the Q3 results season and accelerate in CY 2026. The combination of these factors has the potential to reverse the FII outflows. Expectations of the Nifty reaching new highs soon and a forthcoming trade deal between the US and India could attract FIIs back into the Indian market,” he added.
Sector-wise, PSU banks, IT, and financial services showed strong buying interest and performed well under favorable global cues, while sectors such as capital markets, media, metal, and realty lagged due to profit booking and sector rotation limiting gains.
The article was published on November 24, 2025.
