New Delhi, Aug 8 (IANS): A significant near-term trend in the market now is the sustained selling by FIIs of Rs 10,437 crore during the last eight trading sessions matched by the sustained buying by DIIs of Rs 10,860 crore in the same period, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

It is important to understand that while FII activity is influenced by external factors like the Dollar Index and US bond yields, DII activity is predominantly determined by domestic factors like GDP growth and corporate earnings, he said.

In the near term the spike in the US 10-year bond yield above 4 per cent has triggered selling by FIIs who might be moving some money to the US bonds.

The domestic market construct continues to be resilient. Thursday's US CPI inflation print will be keenly watched by markets, he said.

Sensex is down 71 points in Tuesday morning trade at 65,881 points.

Powergrid and M&M are the top losers, down more than 2 per cent. Sun Pharma, NTPC, JSW Steel are down more than 1 per cent.