Private sector banks are down in trade with ICICI Bank down more than 1 per cent, Kotak Mahindra is also down almost 1 per cent.

Since the global construct is slightly negative as evidenced by the rising dollar and rising US bond yields, the FPIs may be tempted to sell, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

FPI selling is not having any major impact on the market since DIIs, HNIs and retail investors are calling the shots now, he said.

"A distinct feature of a bull market is its ability to set new highs. This was evident yesterday when the Nifty set a new intraday high. In this bullish scenario characterised by strong momentum and supported by sustained gush of capital flows into the market, every dip will be bought, imparting resilience to the market,” he said.

Even while riding the bull, investors should know that liquidity is overwhelming fundamentals in many pockets of the broader market. This calls for caution, he added.

Deepak Jasani, Head of Retail Research, HDFC Securities said Asian stocks got off to a mixed start on Tuesday as strong US data sustained the view the Federal Reserve will be slow to cut rates

US stocks closed mostly lower on Monday to start the second quarter, halting a rally that has recently brought all three indexes to fresh record highs. Investors were still digesting Fed Chair Jerome Powell’s message on Friday that the US Fed isn’t in a hurry to lower interest rates. Investors aggressively sold off US government debt on Monday amid further signs of persistent inflation, sending Treasury yields up by the most in more than five months, he said.