Sensex down 250 pts, Nifty slips below 25,700; PSU banks continue to shine

Nifty, Sensex slip for second day; PSU Banks, Metals gain

Indian frontline indices extended their losses for the second consecutive session on November 3, beginning the new week on a subdued note amid mixed global cues. Alongside second-quarter earnings, investors are also keeping an eye on India–US trade developments, which analysts say could set the tone for the markets in the days ahead.

Around morning, the Sensex was down 249.61 points, or 0.30 percent, at 83,689.10, while the Nifty slipped 55.90 points, or 0.22 percent, to 25,666.20. Market breadth leaned positive, with 1,788 shares advancing, 1,206 declining, and 213 unchanged.

Catch all the market action on our LIVE blog

The broader markets held firm, with midcap and smallcap indices rising up to 0.6 percent in early trade. India VIX, the volatility index, climbed 4 percent, reflecting some caution among traders.

Among sectors, Nifty PSU Bank remained the top performer, continuing last week’s strong momentum after a 5 percent surge. Metal and pharma stocks also saw buying interest, with both indices gaining 0.5 percent each. On the flip side, FMCG, IT, and consumer durable stocks came under pressure.

Stock-specific action was visible as companies continued to post their Q2 earnings. Shares of Shriram Finance jumped 5 percent in early trade after brokerages retained their positive outlook, citing lower credit costs. CLSA reiterated its outperform rating, raising the target price to Rs 840 from Rs 735 per share, and lifted its FY26–FY28 earnings estimates by 2–4 percent.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the recent Trump–Xi Jinping summit “delivered only a temporary truce in the US–China trade war, not a full-fledged deal.” He added that the impact of this development on a possible US–India trade pact “remains to be seen.”

Vijayakumar also pointed out a steady positive trend in the auto sector, saying that “the demand for automobiles, especially small cars, has been stronger than even optimistic expectations, which should keep auto shares resilient.”

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.