Sensex Pauses After 3-Day Rally; IT, Private Banks Drag Early Trade

The Indian stock market's three-day rally paused as the Sensex and Nifty opened lower due to profit booking. Declines in IT and private banking sectors dragged the market down, though metal stocks showed strength.

After three straight days of gains, the Indian stock market on Thursday (November 13) took a breather. The Sensex and Nifty opened slightly lower as investors turned cautious, booking profits in IT and private banking stocks. At 9:15 am, the Sensex slipped 94 points to 84,372, while the Nifty dipped 31 points to 25,844. Market experts say the pause isn’t surprising after the strong run-up seen earlier this week.

Metals Shine, IT and Banks Drag

Early trade saw mixed trends across sectors. Metal stocks stayed strong, with the Nifty Metal index rising 0.9%, supported by global cues. Media stocks too edged up modestly. But on the downside, Nifty IT dropped 0.34% and Private Bank stocks fell over 1%, pulling the benchmark lower.

Other sectors like auto, oil & gas, and consumer durables saw mild weakness. Broader indices, including Bank Nifty, FMCG, Infra, and Realty, traded flat, showing no strong directional bias. Meanwhile, the India VIX, the volatility index, eased nearly 3% to 11.75, reflecting calm market sentiment.

Inflation Hits Record Low, Rate Cut Hopes Rise

Adding a bit of cheer, India's retail inflation slipped to just 0.25% in October, the lowest level since records began in 2013. The sharp fall has fueled hopes that the RBI may go for another rate cut in December, a move that could further support equity markets.

What Experts Say

Market watchers, however, feel the rally needs a fresh spark. With the Bihar election results largely priced in, traders are now looking for new domestic or global triggers.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, explained, "The key factor to watch will be any India-US trade deal that could ease tariffs. The drop in inflation strengthens the case for an RBI rate cut, but weak monetary policy transmission remains a concern."