The Indian stock market kicked off the new week on a cautious note, with benchmark indices opening slightly lower after last week's profit booking at higher levels. However, midcap and smallcap stocks showed resilience, offering a glimmer of positivity amid a muted start.

At the opening bell on Monday (November 3, 2025), the BSE Sensex slipped 103.61 points to 83,835.10, while the Nifty 50 fell 25.25 points to 25,696.85. In the previous session, the Sensex had closed at 83,938.71 and the Nifty at 25,722.10.

Broader markets in green despite weak start

Interestingly, while large-cap indices opened soft, the broader markets bucked the trend. The BSE Midcap index edged up by 0.09% (43.82 points) and the BSE Smallcap index rose 0.11% (61.77 points) to trade at 53,937.91. Analysts say this indicates investors are still finding opportunities in mid- and small-cap counters despite recent volatility.

Gift Nifty hints at cautious sentiment

The Gift Nifty, which acts as an early indicator for domestic markets, also signaled a subdued start. It opened 67.5 points lower at 25,832.50, compared to its previous close of 25,900, reflecting mild bearish sentiment among traders.

FIIs sell, DIIs balance the scales

Foreign Institutional Investors (FIIs) remained net sellers, offloading shares worth Rs 6,769.34 crore on October 29. However, Domestic Institutional Investors (DIIs) provided some support, buying equities worth Rs 7,068.44 crore during the same session, helping to stabilize the markets.

Market fundamentals improving: Motilal Oswal

According to a report by Motilal Oswal Financial Services, Indian markets are in better shape now than a year ago, with corporate earnings showing signs of recovery. The report noted that the second-quarter FY26 results have been largely in line with expectations, and the pace of earnings downgrades is slowing down.

“Although Indian equities have seen limited movement over the past year, the markets now appear much healthier,” the report stated. It added that the earnings cycle seems to be bottoming out, with growth expected to pick up into double digits in the coming quarters.

Motilal Oswal further highlighted that valuations remain reasonable, with the Nifty trading at 21.4 times earnings, near its long-term average of 20.8 times.“Any signs of earnings acceleration should support valuation expansion,” it added.

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