Did Indian equity indices remain flat due to profit booking ahead of Bihar poll results?
Synopsis
Key Takeaways
- Sensex ended at 84,478.67, showing slight growth.
- Nifty closed at 25,879.15, reflecting minor gains.
- Profit booking in major sectors impacted market performance.
- Sectoral indices displayed mixed reactions.
- The rupee is likely to stay range-bound ahead of key economic data.
Mumbai, Nov 13 (NationPress) The primary domestic equity indices concluded the trading day with minimal changes on Thursday, as early gains were wiped out due to profit booking in major IT and automotive sectors, all while anticipating the results of the Bihar elections.
The Sensex wrapped up at 84,478.67, marking an increase of 12.16 points or 0.01 percent. Following the momentum from the previous day, the 30-share index opened on a positive note at 84,525.89, compared to the last session's closure of 84,466.51. However, the index experienced fluctuations during the trading period and ultimately settled flat as profit booking occurred after three consecutive days of gains.
The Nifty index concluded at 25,879.15, rising by 3.35 points or 0.01 percent.
According to Vinod Nair, Head of Research at Geojit Investments Limited, "National equities ended the day flat after a positive trading session, as profit booking negated early gains despite favorable global and domestic indicators. Market sentiment was lifted by Trump signing a short-term funding bill to resolve the U.S. government shutdown and optimism regarding tariff relief for India."
The remarkably low inflation figures from October strengthened expectations of a potential RBI rate cut, making sectors sensitive to rates such as metals and real estate appealing to investors.
Among the top gainers in the Sensex stocks were ICICI Bank, PowerGrid, L&T, Bharti Airtel, Sun Pharma, and Maruti Suzuki. Conversely, stocks like Tata Motors CV, Mahindra and Mahindra, Tata Steel, BEL, Tata Motors PV, Trent, TCS, Infosys, Hindustan Unilever, and Bajaj FinServ experienced declines during the session.
Sectoral indices displayed volatility, reflecting a mixed sentiment from investors throughout the day. The Nifty Financial Services gained 58 points or 0.22 percent, while the Nifty Bank increased 107 points or 0.18 percent. In contrast, the Nifty Auto saw a decline of 102 points or 0.37 percent, the Nifty IT dropped 175 points or 0.48 percent, and the Nifty FMCG closed down 285 points or 0.51 percent.
Broader indices faced challenges as small-cap and mid-cap stocks experienced selling pressure. The Nifty Small Cap 100 fell by 66 points or 0.37 percent, and the Nifty Midcap 100 decreased by 210 points or 0.35 percent, while the Nifty 100 remained flat.
The Indian Rupee traded steadily within a narrow range around 88.67, as market players adopted a cautious stance ahead of the Bihar election results expected on Friday morning, leading to a subdued trading day.
"Traders are looking forward to the release of the U.S. CPI data, which is anticipated to impact the movements of the dollar index and, subsequently, the trends of the rupee. With limited triggers in the interim, the rupee is likely to remain within a range, anticipated to be between 88.40 and 88.95," noted Jateen Trivedi of LKP Securities.