The Indian stock market is expected to open on a muted note today, November 18, 2025, following negative cues from global markets. Several key factors have influenced this outlook, stemming from overnight developments in the US and Asian markets, as well as shifts in investor activity.
1. Gift Nifty Signals Muted Start:
Gift Nifty was trading around the 25,951 level. This is a discount compared to the Nifty futures' previous close, indicating a potentially negative start for Indian stock market indices. As a US-dollar-denominated derivative futures contract based on India's flagship Nifty 50, the Gift Nifty serves as an early indicator of market sentiment.
2. Asian Markets in the Red:
Asian markets are trading lower today, mirroring overnight declines on Wall Street. Japan's Nikkei 225 has plunged 2.28%, while the Topix declined 0.6%. South Korea's Kospi fell 1.63%, and the Kosdaq slid 0.58%. Hong Kong's Hang Seng index futures also point to a lower opening. These negative trends in Asian markets are adding pressure on Indian indices.
3. US Tech Stocks Sell-Off:
US stock markets experienced a sharp decline on Monday, particularly driven by a sell-off in technology stocks. The Dow Jones Industrial Average fell 1.18%, the S&P 500 dropped 0.92%, and the Nasdaq Composite closed 0.84% lower. Shares of major tech companies like Nvidia, AMD, and Apple also saw declines. This weakness in US tech stocks is contributing to the cautious sentiment in Asian and Indian markets.
4. FII/DII Activity:
On November 17, 2025, Foreign Institutional Investors (FIIs) turned marginal buyers, purchasing Indian equities worth ₹442.20 crore net. Domestic Institutional Investors (DIIs) continued their strong inflows, buying equities worth ₹1,465.90 crore net. DII inflows have helped to limit deeper downside despite persistent volatility, as reflected in the India VIX rising 2.93%.
5. Sensex and Nifty's Previous Day Performance:
On Monday, November 17, the Indian stock market closed higher, driven by broad-based buying, upbeat Q2 results, and optimism surrounding a potential India-US trade deal. The Sensex rallied 388.17 points (0.46%) to close at 84,950.95, while the Nifty 50 settled 103.40 points (0.40%) higher at 26,013.45.
6. Global Economic Data and Factors:
Investors are closely watching various global factors, including the Gaza peace plan, developments in the India-US trade deal, unemployment rate data, trade deficit figures, the strength of the dollar, and movement in crude oil and gold prices.
7. Technical Outlook:
Despite the expected muted opening, some analysts maintain a bullish outlook on the Indian market, citing strong macroeconomic factors, policy support, and improving earnings momentum. However, the market is likely to face some volatility due to the upcoming expiry of weekly options contracts of the Nifty 50.
