Indian equity markets opened on a subdued note Thursday amid persistent foreign investor selling and mixed global cues, with the BSE Sensex starting at 80,098.30 and NSE Nifty at 24,412.70.

Foreign institutional investors (FIIs) have pulled out a massive ₹93,088 crore from Indian equities in October so far, according to NSDL data. “The fundamental trigger for the FII outflows is the elevated valuations in India and the relatively cheap and attractive valuations in markets like China and Hong Kong,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Metal stocks led the decline with Hindalco dropping 6.10 per cent in early trade. FMCG heavyweights also saw significant selling pressure with Hindustan Unilever falling 4.78 per cent, followed by Nestle India declining 1.47 per cent and Britannia Industries down 1.15 per cent. In the insurance space, SBI Life slumped 4.60 per cent.

Banking stocks showed resilience with HDFC Bank gaining 1.33 per cent. Healthcare stocks also traded higher with Cipla advancing 0.91 per cent and Sun Pharma rising 0.86 per cent. Technology stocks continued their upward momentum with HCL Tech adding 0.76 per cent.

“The market is anticipated to open flat to positively due to the domestic equity market being nearly oversold, with the Nifty RSI at 35, suggesting a potential reversal,” noted Vikas Jain, Head of Research at Reliance Securities.

The market faces multiple headwinds including disappointing Q2 earnings, rising U.S. bond yields, and election uncertainties. “The uptrend in the market is not compatible with downtrend in earnings growth and, therefore, the market is witnessing selling at every rise, turning the near-term market structure into ‘sell on rally,’” Vijayakumar added.

Technically, 24,600 has emerged as a crucial resistance level for Nifty. “Until there are clear signs of a bullish reversal, it’s wise to avoid complacent long positions,” said Sameet Chavan, Head Research, Technical and Derivative at Angel One.

Global markets remained under pressure as Wall Street witnessed its sharpest single-day fall since early September, with the Dow dropping over 400 points. The U.S. 10-year Treasury yield surpassed 4.25 per cent, while the dollar index reached a three-month high at 104.

In the commodities space, gold declined 1 per cent to $2,722 per ounce on higher U.S. bond yields. Crude oil prices showed volatility after U.S. crude inventories increased by 5.5 million barrels, significantly above the expected rise of 0.9 million barrels.

Investors are closely watching quarterly earnings from companies including ITC, NTPC, and IndusInd Bank scheduled for release today. Power Grid Corporation will also be in focus after approving an investment of ₹284 crore for the Rajasthan Transmission System Project.

The India VIX, a volatility gauge, rose 1.58 per cent to 14.62, indicating continued market uncertainty.

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