Stock market today: Nifty 50, Sensex fail to hold gains, close flat in volatile trade

Stock market today: The Indian market ended in the red for the third consecutive session on November 11, though the pace of selling slowed during today’s trading. Despite starting the day in negative territory, both the Nifty 50 and Sensex gained nearly 1% in the first half of the session.

However, the market was gripped by a “sell on the rise” sentiment, causing both indices to close lower. Investors seem to be using any uptick as an opportunity to sell, with sentiment remaining subdued due to concerns over softening Q2 earnings and other domestic factors.

The IT and banking sectors helped support a recovery in the market, but heavyweights such as Reliance Industries and Bharti Airtel weighed on the overall market rebound.

Consequently, the Nifty 50 closed the session with a decline of 0.03%, settling at 24,141 points. The S&P BSE Sensex closed 52.51 points, or 0.07%, lower at 79,433.

In contrast, the broader market continues to face significant selling pressure, driven by the overheated valuations of mid- and small-cap stocks. The Nifty Midcap 100 index declined by 0.88%, closing at 55,853, while the Nifty Smallcap 100 index dropped 1.22%, finishing at 18,219 compared to the previous session’s closing level.

The recent correction in Indian stocks has been primarily driven by domestic factors rather than global developments. Key concerns include the expectation that inflation will remain elevated in the coming months, a slowdown in high-frequency indicators, weak spending by Urban India, rupee hitting record lows and elevated market valuations.

Additionally, there are growing expectations that the Reserve Bank of India may keep interest rates at higher levels until February, adding further pressure on market sentiment.

Among the sectoral indices, Nifty IT extended its winning streak for the second consecutive session, 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 the 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 MoM basis, essentially forging RBI to hold the interest rates in the short-term, he further added.

30 Nifty 50 stocks close in the red 

A total of 27 Nifty 50 stocks ended today’s session in the red, with Asian Paints emerging as the biggest loser as the company’s weak performance in Q2FY25 had led to sharp sell-off in today’s session.