Indian equity markets concluded the trading day on a notably subdued note, marking the second consecutive session of losses. The session was characterized by volatility, as the initial momentum from an inclusion in a major global index was quickly reversed. Investors reacted cautiously to soft domestic economic data and persistent outflows from foreign institutions, suggesting that global risk-off sentiment is currently outweighing the domestic growth narrative. The market breadth was decisively negative, with selling pressure affecting a majority of traded stocks.
By the closing bell, the key benchmark indices were firmly in the red. The BSE Sensex settled lower by 148.14 points, to close at 83,311.01. Similarly, the National Stock Exchange’s Nifty 50 dropped 87.95 points, ending the day at 25,509.70. The decline was steeper in the broader market, indicating a wider trend of profit booking, with the mid-cap and small-cap indices falling more sharply than their frontline peers.
Sectorally, the indices most affected included Metal and Media, which led the decline. This was in contrast to the IT and Auto sectors, which managed to close with marginal gains, providing some support to the overall market structure. Individual stocks that dragged the Sensex lower included Power Grid, Eternal, Bharat Electronics, and the financial heavyweights, ICICI Bank and Bajaj Finance. On the positive side, shares of Asian Paints, Reliance Industries, Mahindra & Mahindra, and UltraTech Cement displayed strength and managed to limit the overall losses.
The critical dynamic of institutional flows continues to define market stability. Based on provisional data from the last trading session on Tuesday, November 4, 2025 (due to a market holiday yesterday), the trend of foreign selling persisted. Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth INR 1,067.01 crore. These sustained outflows reflect the sensitivity of foreign funds to global factors, including high US Treasury yields and lingering uncertainty over the US Federal Reserve’s monetary policy. In contrast, Domestic Institutional Investors (DIIs) remained the primary stabilizing force, injecting INR 1,202.90 crore into the cash market. This consistent support from local mutual funds and insurance companies, backed by robust retail investment via SIPs, remains the market’s key defense mechanism against deeper corrections. Going forward, domestic inflation trends and global central bank commentary will be closely watched by investors for fresh directional cues.
