Indian Markets Trade Cautiously as Tech Stocks Weigh on Nifty and FIIs Continue Buying

Indian benchmark indices opened cautiously on Wednesday as losses in major IT stocks offset gains in banking, FMCG, and healthcare sectors. Foreign institutional investors extended their net equity purchases for a third straight session, providing support to the market.

Indian equity markets traded cautiously on Wednesday, November 4, following a sharp four-session rally. The Nifty 50 opened at 23,837.25, up 26.40 points or 0.11 per cent from its previous close, while the Sensex opened at 76,853.11 and traded at 77,071.67, up 153.82 points or 0.20 per cent.

The trading session displayed a clear sector rotation away from technology shares and into consumption, banking, and healthcare. Major IT firms faced pressure, with HCL Technologies leading the losses by falling 1.45 per cent to ₹1,418.20. Infosys slipped 1.39 per cent to ₹1,132.10, TCS dropped 1.27 per cent to ₹2,467.30, and BSE Ltd declined 1.38 per cent to ₹3,615. NTPC also shed 0.95 per cent to trade at ₹318.50.

Conversely, banking and FMCG stocks held firm. State Bank of India led the top gainers on the Nifty 50, rising 1.06 per cent to ₹980.55. ITC followed with a 1.02 per cent gain to ₹276.70. Healthcare names also advanced, with Apollo Hospitals rising 0.82 per cent to ₹8,509, Nestle India gaining 0.80 per cent to ₹1,258.40, and Max Healthcare adding 0.78 per cent to reach ₹902.50.

Foreign institutional investors recorded net equity purchases of ₹6,836 crore on November 3, marking their third consecutive session of buying. FIIs have purchased stocks worth ₹18,661 crore over five of the last six trading sessions. In contrast, domestic institutional investors extended their selling streak to three straight sessions with net outflows of ₹3,678 crore.

Analyst commentary suggests a selective market environment. Shrikant Chouhan of Kotak Neo noted that 23,500/76,000 and 23,600/76,300 will act as key support levels, with the market potentially rallying towards 23,950–24,000 on the upside. Deepesh Sarawagi of Choice Broking cautioned that Bank Nifty’s inability to clear moving-average hurdles warrants caution, suggesting traders look for fresh buying confirmation.

On the macroeconomic front, global cues remained mixed. Asian markets opened lower amid pressure on technology stocks, while Brent crude stood at $104.80 a barrel, the dollar index at 101.5, and the rupee at 94.74 against the dollar. US job openings rose to 7.5 million in the latest JOLTS report, exceeding expectations, while factory orders increased by 1.8 per cent. Markets are also monitoring US midterm election results and their potential economic impact.

"The recent trend of sector rotation highlights how institutional capital shifts during periods of consolidation. While technology stocks face headwinds, continued buying by foreign institutional investors in banking and FMCG sectors provides essential market stability. Entrepreneurs and businesses must monitor these macro shifts closely, as liquidity trends and foreign capital flows heavily influence overall market sentiment, credit availability, and investor appetite across the broader Indian economy." — Dr. Shishir Gupta, Founder & CEO, StartupLanes