Nifty, Sensex in red despite global optimism on US shutdown nearing end, IT stocks shine

Nifty, Sensex kicked off the session on a flat note on November 11.

Dalal Street's frontline indices Nifty 50 and Sensex opened on a tepid note on Tuesday, November 11, despite positive global cues amid progress on the U.S. shutdown bill and optimism over a nearing U.S. trade deal.

At 09:19 a.m., the Sensex was down 95.27 points or 0.11 percent at 83,440.08, and the Nifty was down 25.65 points or 0.10 percent at 25,548.70.

Most sectoral indices were trading with a mild positive bias, reflecting a steady but cautious market mood. Nifty IT was the standout gainer with a firm uptick, while Pharma, PSU Bank, Private Bank, Realty, Healthcare, Consumer Durables, and Oil and Gas also saw small advances. Media and Metal inched higher too. On the flip side, Financial Services 25/50 and FMCG slipped slightly, signalling selective profit-taking.

The markets are expected to view the end of the U.S. shutdown as a relief, as it lowers the risk of prolonged disruption to government services, payments, and key data releases. If the bill clears all stages in the coming days, the U.S. government could reopen soon, easing uncertainty for investors. The easing in global uncertainty is set to boost sentiment, support broad-based buying, and reinforce a risk-on tone in the domestic market as traders position themselves more confidently.

The advice for investors is that it is time to remain cautious as the AI trade may continue for some more time, and so long as this trade persists, FIIs, particularly hedge funds, may continue to sell in India. "This will weigh on Indian markets," stated VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

He added that investors have to give priority to valuations and safety now. While Nvidia, the most valuable company in the world, is trading at 51 times earnings, Indian retail investors are investing in IPOs priced at 230 times earnings. "These are dangerous, unhealthy trends. Time for caution," Vijayakumar said.

On the technical front, the Nifty appears poised for range-bound movement as traders adopt a cautious stance ahead of key triggers. "While the 25,500–25,350 zone is likely to act as a strong support base, the 25,650–25,750 zone remains the immediate resistance cluster," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

He added that a buy-on-dips approach remains favourable only as long as the index sustains above 25,500, while a decisive close above 25,750 could pave the way for a meaningful up-move toward the 25,900–26,000 levels.

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