Sensex, Nifty end lower in Diwali Muhurat trading as banking stocks drag
Synopsis
Sensex and Nifty closed in the red during the 2026 Diwali Muhurat session, with banking and IT stocks dragging both benchmarks lower. Yet the broader market held firm — Nifty SmallCap gained nearly 1% — and analysts say the new Samvat should reward quality and earnings-driven picks over valuation plays.
Key Takeaways
Sensex ended 28.62 points lower at 80,999.40 during the Diwali Muhurat session on 8 November 2026 .
Nifty50 fell 43.95 points to close at 24,986.40 , slipping below the 25,000 mark.
SBI Life Insurance , InterGlobe Aviation , and Bharti Airtel were among the top Nifty losers; Sun Pharma and Tata Steel gained.
Nifty MidCap 100 rose 0.13% and Nifty SmallCap gained 0.94% , showing broader market resilience.
Analysts forecast moderate, selective returns in the new Samvat , with earnings growth — not valuation expansion — seen as the key market driver.
BSE Sensex and NSE Nifty50 closed in the red during Sunday's special Muhurat trading session on 8 November 2026, as losses in banking and IT stocks overshadowed an otherwise auspicious start to Vikram Samvat. The session, held to mark Diwali and coinciding with Lakshmi Puja, saw the benchmark indices surrender early gains and settle below key psychological levels.
How the Indices Closed
The Sensex declined 28.62 points, or 0.04%, to settle at 80,999.40, while the Nifty50 fell 43.95 points, or 0.18%, to close at 24,986.40 — below the closely watched 25,000 mark. The Nifty had touched an intra-day high of 25,132 before giving up those gains, while the Sensex swung between a high of 81,442 and a low of 80,932 before paring to close nearly 29 points lower.
Biggest Movers on the Nifty
Among the top laggards, SBI Life Insurance Company, InterGlobe Aviation, and Bharti Airtel registered the steepest declines during the session. On the gainers' side, Sun Pharma and Tata Steel emerged as the standout performers. Sectorally, Nifty Bank and Nifty Private Bank posted the sharpest drops, while Nifty Pharma and Nifty Healthcare led advances.
Broader Market Shows Resilience
Despite the headline index weakness, the broader market held its ground. The Nifty MidCap 100 rose 0.13% and the Nifty SmallCap index gained 0.94%, signalling that investor appetite remains intact beyond the large-cap space. This divergence between large-caps and broader indices has been a recurring theme in recent sessions, with mid- and small-cap stocks drawing retail investor interest.
What Analysts Said for the New Samvat
Market experts offered a measured outlook for the new Samvat. 'From a market perspective, we believe the outlook for the coming Samvat remains constructive, albeit with expectations of moderate and more selective returns,' analysts noted. They added that 'earnings growth, rather than valuation expansion, is likely to be the primary driver of market performance going forward.' Separately, strategists urged investors to focus on 'quality, earnings resilience and prudent investing' as India enters the new Hindu financial year.
What Is Muhurat Trading
Muhurat trading is a ceremonial, truncated stock exchange session held annually on the evening of Diwali. It coincides with Lakshmi Puja and is traditionally regarded as an auspicious time to initiate investments, symbolically opening the new Vikram Samvat — the Hindu financial calendar. Both BSE and NSE conduct the session irrespective of regular market holidays. The session is closely watched for the symbolic direction it sets, though volumes remain thin compared to a normal trading day.
How markets perform through the first weeks of the new Samvat will be watched closely, with earnings season and global macro cues expected to set the tone.
Point of View
Echoing a broader rotation away from rate-sensitive financials toward defensive and domestic-demand plays. Analysts pegging the new Samvat on earnings growth rather than valuation expansion is the right frame, but it also implies large-cap IT and banking — which have stretched multiples — face a more selective re-rating ahead. The divergence between headline indices and the broader market is the real signal worth tracking into the new Hindu financial year.
NationPress
8 Nov 2026
Frequently Asked Questions
What is Muhurat trading and why does it matter?
Muhurat trading is a special, short stock exchange session held on Diwali evening to coincide with Lakshmi Puja, marking the start of the new Vikram Samvat or Hindu financial year. Both BSE and NSE conduct the session, and it is considered auspicious for initiating investments, though volumes are thinner than a regular trading day.
How did Sensex and Nifty perform in the 2026 Diwali Muhurat session?
The Sensex declined 28.62 points, or 0.04%, to settle at 80,999.40, while the Nifty50 fell 43.95 points, or 0.18%, to close at 24,986.40 on 8 November 2026. Both indices surrendered early gains amid selling in banking and IT stocks.
Which stocks gained and which fell during the Muhurat trading session?
Sun Pharma and Tata Steel were among the top gainers, while SBI Life Insurance Company, InterGlobe Aviation, and Bharti Airtel were the biggest losers. Nifty Bank and Nifty Private Bank posted the steepest sectoral declines, while Nifty Pharma and Nifty Healthcare led gains.
How did the broader market perform during Muhurat trading?
The broader market outperformed the headline indices, with Nifty MidCap 100 rising 0.13% and Nifty SmallCap gaining 0.94%. This signals that investor interest in mid- and small-cap stocks remained firm despite large-cap weakness.
What is the market outlook for the new Samvat?
Analysts describe the outlook as 'constructive but selective,' expecting earnings growth — rather than valuation expansion — to drive returns in the new Samvat. They advise investors to focus on quality stocks with earnings resilience rather than broadly chasing market momentum.
