Equity benchmarks opened on a subdued note on Tuesday, despite strong overnight gains in global markets, primarily due to persistent foreign institutional investor (FII) selling and a decline in banking stocks impacting market sentiment. The BSE Sensex started at 83,671.52, slightly up from its previous close of 83,535.35, but quickly declined to 83,347.50 by 10:01 a.m., marking a drop of 187.85 points or 0.22 percent. The Nifty 50 also opened positively at 25,617.00 compared to its previous close of 25,574.35, before falling to 25,514.85, down 59.50 points or 0.23 percent.
“Indian markets opened cautiously today. The Nifty 50 began just above 25,600, supported by the strength in U.S. equities following the Senate’s progress on a bill to end the historic government shutdown,” stated Ponmudi R, CEO of Enrich Money. “However, early gains were limited near 25,650–25,700, as intraday profit-booking pulled the index back below 25,550, with ongoing foreign investor selling and continued rupee weakness tempering initial optimism.”
This decline occurred despite a strong rally in global markets; the Nasdaq gained 2.2 percent and added over $1 trillion in market value overnight. This optimism was fueled by U.S. President Donald Trump’s comments that a U.S.-India trade deal is nearing completion, which analysts believe could benefit export-oriented sectors.
Banking and financial services stocks were significant laggards, with Bajaj Finance dropping 6.82 percent to ₹1,011.00 and Bajaj Finserv declining 6.53 percent to ₹1,979.90. Shriram Finance fell 1.38 percent to ₹809.80, while Jio Financial Services decreased by 1.28 percent to ₹298.10. The Bank Nifty, which opened near 57,960, traded within a narrow band of 57,820-58,080.
On the positive side, defense stocks led with Bharat Electronics Limited (BEL) increasing by 1.42 percent to ₹422.75. Bharti Airtel rose by 1.11 percent to ₹2,042.30, and IndiGo gained 0.92 percent to ₹5,640.00. Among technology stocks, HCL Technologies saw a 0.68 percent rise to ₹1,551.00, riding the positive momentum from the global AI trade.
“The AI trade, which faced weakness last week, has rebounded with a 2.2 percent gain in the Nasdaq,” noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. While he expressed concerns about the timeline for returns from AI stocks, he emphasized that there isn’t a bubble in AI stocks, particularly when compared to the tech bubble that crashed in 2000.
Foreign Institutional Investors remained net sellers on November 10, offloading equities worth ₹4,114 crore, continuing to exert pressure on the market. Conversely, Domestic Institutional Investors provided support by purchasing equities worth over ₹5,805 crore.
“Technically, strength will surface only above 25,807, with 25,653 serving as a critical hurdle, indicating a range-bound movement with a mild negative bias before a potential recovery at lower levels,” commented Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
In commodities, gold and silver reached three-week highs amid expectations of a resolution to the U.S. government shutdown and increasing anticipation of potential rate cuts during the December Federal Reserve meeting. Crude oil prices also saw an upward trend, buoyed by optimism over the prospective resolution of the U.S. shutdown.
Analysts recommended a cautious buy-on-dips approach due to the existing volatility and mixed global backdrop, advising fresh long positions only if the Nifty sustains above 26,100.
Published on November 11, 2025.
