Indian stock markets, the Sensex and Nifty, closed nearly flat after a brief rally was erased by late profit-booking. The session saw mixed sectoral performance, reflecting cautious investor sentiment.
Indian stock markets couldn't hold their mid-day spark on Thursday (November 13), ending the session almost flat as traders chose to play it safe on the weekly expiry. After a quiet start, both the Sensex and Nifty saw a brief rally in the afternoon but quickly lost steam as investors booked profits in the final hour.
At close, the Sensex inched up just 12 points to 84,478.67, while the Nifty 50 managed to stay above the green line, ending 3 points higher at 25,879.15. The index had briefly crossed the 26,000 mark, but bears soon took control, capping further upside.
Mixed Sectoral Performance
It was a day of mixed movement across sectors. Realty and Pharma stocks were the top performers, gaining around 0.5% each, while Financial Services and Healthcare indices also edged higher. Private banks lent modest support to the benchmarks.
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On the other hand, PSU banks, media, FMCG, IT, and auto stocks witnessed mild selling, slipping between 0.3% and 0.6%. Oil & Gas and consumer durables names also ended marginally lower, highlighting the overall cautious market sentiment.
Inflation at Record Low Fuels Rate-Cut Hopes
Adding to the day's economic highlights, India's retail inflation dropped to a record low of 0.25% in October, marking the lowest level since 2013. The sharp fall has boosted expectations of a possible RBI rate cut in the upcoming December policy meeting.
"The sharp fall in inflation is encouraging, and a trade deal between India and the US could be another positive development," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "However, weak policy transmission remains a challenge for the RBI."
Markets Await Fresh Triggers
With the Bihar election results largely factored in, analysts believe any major deviation from exit poll predictions could stir volatility. Beyond that, traders are looking for new catalysts, either on the economic front or from global developments, to drive the next leg of the rally.
Technical View: Nifty Finds Support Around 25,700
From a technical standpoint, the Nifty remains comfortably above its 10 and 20-day exponential moving averages (DEMA), turning previous resistance zones into new support.
"As long as the index stays above the 25,700–25,650 zone, traders can adopt a buy-on-dips strategy," said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
