The S&P BSE Sensex dropped 0.24% to 84,264.56, down 202 points, while the NSE Nifty 50 slipped 0.24%, or 62.65 points, to 25,813.15 at the open. However, it soon saw a quick recovery and traded in the green. At around 9:35 AM, BSE Sensex traded 80 pts lower at 84,387, whereas Nifty50 fell 23 pts or 0.1% to 25,846.
Tata Motors CV, Eternal, Infosys, Tata Motors PV, and HCL Technologies led losses on the 30-stock Sensex, falling 1-4%, while Asian Paints, Tata Steel, Bajaj Finserv, and Bharti Airtel advanced 1-3%.
In broader markets, midcap stocks edged up 0.1% and smallcaps gained 0.2%.
Honasa Consumer, the parent of Mamaearth, jumped 9% after posting a return to profitability in the September quarter. Asian Paints climbed 4% to a fresh 52-week high on a 43% year-on-year rise in net profit, boosted by strong decorative paint demand and improved cost efficiencies.
Investors have been supported by easing domestic inflation, the end of the U.S. government shutdown, and a reduction in trade tensions, fueling a rally this week.Meanwhile, exit polls indicate the ruling National Democratic Alliance is poised to retain power in the state, with the market has already factored in.
Expert views
The market needs more triggers to take it to new record highs, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that with the outcome of the Bihar polls largely discounted by the market, there are no political triggers that can push the market significantly higher and the reverse might happen if the actual poll results turn out to be different from the exit polls.
“The important economic factors that have to be watched for is a possible India-U.S. trade deal removing the penal tariffs and reducing the reciprocal tariffs. The decline in October retail inflation in India to 0.25% indicates the possibility of a rate cut from the MPC in December. But the monetary policy transmission turning weak has become a challenge for the RBI,” said Vijayakumar.
In the near-term the market is likely to consolidate and then respond to triggers when they happen, Vijayakumar said, adding that the positive triggers happening simultaneously can lead to short-covering pushing the market sharply up, but a sustained uptrend would be challenging given the FII selling and elevated valuations.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth a little over Rs 1,750 crore on November 12, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 5,127 crore.
Oil prices
Oil prices fell for a second straight session on Thursday after industry data showed a build in U.S. crude inventories, deepening worries that global supply remains more than sufficient to meet current demand.
Brent crude futures slipped 0.03% to $62.69 a barrel by 0234 GMT, after a 3.8% drop in the previous session. U.S. West Texas Intermediate crude edged down 0.09% to $58.44, extending Wednesday’s 4.2% slide.
Rupee vs Dollar
The Indian rupee eased 6 paise to 88.68 against the U.S. dollar in early trade on Thursday and is expected to remain rangebound, with weak inflows offset by the Reserve Bank of India’s reluctance to let the currency weaken beyond the 88.80 level.
Most Asian currencies were lower, while the dollar index hovered near 99.50 as markets priced in expectations that the U.S. government shutdown will soon end.
(with inputs from agencies)