Indian Markets Brace for Flat Start! Global Cues Mixed, FIIs Turn Buyers!

Indian benchmark stock indices, Sensex and Nifty, are anticipated to begin trading on November 10 with a flat to negative bias, as indicated by GIFT Nifty trading lower. The previous trading session on November 7 was volatile; however, markets managed to recover from daily lows to close with marginal changes. The Sensex declined by 94.73 points (0.11%) to 83,216.28, and the Nifty fell by 17.40 points (0.07%) to 25,492.30.

Globally, Asian equities traded higher, with the Kospi index showing a notable gain. US equity markets presented a mixed picture; the Dow Jones Industrial Average and S&P 500 eked out small gains, while the Nasdaq Composite closed lower, influenced by economic concerns and high tech valuations. The U.S. dollar index strengthened against major currencies, and yields on US Treasury bonds, including the 10-year and 2-year notes, saw an increase.

Commodity markets observed a rise in crude oil prices, driven by optimism about the potential end of the US government shutdown boosting demand. Gold prices also climbed for a second day, supported by a weakening US economy.

In terms of fund flows on November 6, Foreign Institutional Investors (FIIs) turned net buyers, injecting ₹4,581 crore into equities after a period of selling. Domestic Institutional Investors (DIIs) continued their strong buying trend for the eleventh consecutive session, investing over ₹6,674 crore.

Impact: This analysis provides crucial directional cues for intraday traders and investors. The continued buying by DIIs and the return of FIIs as net buyers, despite global uncertainties and mixed overseas market performance, could offer underlying support to the Indian market. Rating: 7/10.

Heading: * GIFT Nifty: An offshore index tracking Indian equities, providing an early indicator of the Indian market's opening. * Sensex: A primary stock market index representing 30 large, established Indian companies listed on the Bombay Stock Exchange. * Nifty: A benchmark index comprising 50 of the largest Indian companies listed on the National Stock Exchange. * FIIs (Foreign Institutional Investors): Overseas institutions that invest in financial markets of other countries. * DIIs (Domestic Institutional Investors): Local institutions, such as mutual funds and insurance companies, that invest within their home country's markets. * Dollar Index: A measure of the U.S. dollar's value against a basket of six major world currencies. * US Bond Yield: The annual return an investor receives on U.S. government debt securities; rising yields suggest increasing borrowing costs and can impact market sentiment. * Crude Oil: Unrefined petroleum, a key global commodity whose price movements often reflect economic demand and supply dynamics. * Gold: A precious metal widely considered a safe-haven asset, often sought during times of economic or geopolitical uncertainty.