Did Sensex and Nifty Close Lower Amid Monthly Futures and Options Expiry?
Synopsis
Key Takeaways
- Sensex closed down by 313.7 points.
- Nifty declined by 74.7 points.
- Mixed sector performances with Nifty Realty leading gains.
- Profit booking influenced market behavior.
- Investors cautious ahead of economic developments.
Mumbai, Nov 25 (NationPress) The Indian stock exchanges closed lower on Tuesday as traders responded to the monthly expiry of Nifty futures and options for the November series. The Sensex ended down by 313.7 points, settling at 84,587.01, marking a decrease of 0.37 percent. The Nifty also faced a downturn, dropping 74.7 points, or 0.29 percent, to close at 25,884.8.
According to experts, significant call buildup was seen at the 26,000 and 26,200 strike levels for the upcoming weekly expiry on December 2, while notable additions on the put side were recorded at 26,000 and 25,500.
Among the major losers on the Sensex were Trent, Tata Motors PV, HCLTech, Infosys, and Power Grid.
Conversely, Bharat Electronics Ltd (BEL), State Bank of India (SBI), Tata Steel, and Eternal were among the notable gainers.
Sector-wise performance showed a mixed trend, with the Nifty Realty index climbing 1.62 percent, making it the day's top-performing sector. The Nifty PSU Bank increased by 1.44 percent.
In contrast, both the Nifty IT and Nifty Media sectors saw declines of 0.57 percent and 0.80 percent, respectively.
The broader market indices held up better than the major indices, with the Nifty Midcap 100 index rising 0.36 percent and the Nifty Smallcap 100 adding 0.19 percent, indicating ongoing buying interest in mid- and small-cap stocks.
Market analysts indicated that the volatility associated with the expiry and profit booking affected the benchmarks, while select sectors continued to receive fresh investment ahead of December trading.
“Investors remained cautious, awaiting clarity on a potential rate cut in the upcoming FOMC meeting and developments regarding the Indo-US trade deal, despite some positive signals,” analysts noted.
They also mentioned that selling pressure is evident near the 26,000 level, though significant downward movement appears limited due to strong domestic fundamentals, including a robust earnings forecast for the second half.
“PSU banks and real estate stocks showed strong performance, bolstered by a resurgence in home loan demand and increased market share for PSU banks,” analysts observed.