Finance
Stock market today: The Indian market closed on a flat note on Monday, November 11, as gains in IT and bank stocks were offset by losses in index heavyweights.
Despite starting the day in negative territory, the Nifty 50 and Sensex rose roughly 1% in the first half of the session. However, the market was seized by a “sell on the rise” mood, and both indices closed lower. Investors appear to be treating each rise as an opportunity to sell, with sentiment being low due to fears about dismal Q2 earnings and other domestic reasons.
The IT and banking sectors helped support a recovery in the market, but selling in heavyweights such as Reliance Industries, Asian Paints and Bharti Airtel weighed on the overall market rebound.
As a result, the Nifty 50 fell 0.03% to 24,141 at the close of trading. The S&P BSE Sensex ended 52.51 points, or 0.07%, lower at 79,433.
In contrast, the broader market remains under substantial selling pressure, owing to the high valuations of mid- and small-cap firms. The Nifty Midcap 100 index down 0.88% to 55,853, while the Nifty Smallcap 100 index fell 1.22% to 18,219 from the previous session’s close.
The recent drop in Indian stocks has been mostly caused by domestic rather than global events. Key worries include the likelihood that inflation will continue high in the coming months, a slowdown in high-frequency indicators, sluggish spending in urban India, the rupee’s record low, and excessive market valuations.
Furthermore, there are rising concerns that the Reserve Bank of India (RBI) would maintain higher interest rates till February, putting additional pressure on market sentiment.
Among the sectoral indices today, Nifty IT extended its winning streak for the second consecutive session on a strong US dollar, closing with a 1.28% gain, followed by Nifty Bank, which rose by 0.61%. On the other hand, Nifty Media fell by 1.3%, while Nifty Metal, Nifty Pharma, Nifty Oil & Gas, and Nifty Consumer Durables all ended with losses ranging from 0.65% to 1%.
Commenting on today’s market performance Vinod Nair, Head of Research, Geojit Financial Services said, “The actions of FIIs are dominating the current market momentum, which is backed by a weak set of earnings and expectations from Trump policy. The risk of further downgrades in Nifty earnings casts clouds over investor sentiment, while the IT sector continued to outperform due to the strong US dollar and in anticipation of a revamp in US IT spending.”
“India is also looking forward to the CPI data with a muted view as food prices are likely to be higher on an MoM basis, essentially forging RBI to hold the interest rates in the short-term,” he further added.
Source:Mint
