Sensex extends gain for 6th day, Nifty above 25,950; PSU banking stocks lead

PSU Banks Lead, Pharma Drags

Indian benchmark indices extended gains for the sixth straight session on November 17, supported by broad-based buying that kept overall sentiment positive. With the corporate earnings season coming to a close, analysts say the focus for investors will now shift to the upcoming India–US trade talks, which they expect to become the next major market trigger.

Around morning, the Sensex was up 144.14 points or 0.17 percent at 84,706.92, and the Nifty was up 37.50 points or 0.14 percent at 25,947.55. About 2030 shares advanced, 1064 shares declined, and 183 shares unchanged.

Even though headline indices saw modest gains, the broader markets outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 rising up to 0.5 percent. Meanwhile, the India VIX continued to edge higher, signalling some caution among traders even as equities moved up.

Among sectors, Nifty PSU Bank led the rally for the second consecutive day. Stocks such as Central Bank, UCO Bank, Indian Overseas Bank, Bank of India, and Bank of Baroda gained up to 3 percent in early trade. On the other hand, the Nifty Pharma index slipped, dragged by stocks like IPCA Labs, Glenmark Pharma, Ajanta Pharma, and Zydus Lifesciences, which fell up to 3 percent.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Q2 earnings so far point to a clear improvement in profit growth. Net profits have risen 10.8 percent, marking the strongest performance in six quarters and coming in above earlier estimates.

He added that consumption trends suggest earnings may improve further in Q3, with discretionary spending—especially automobiles—likely to drive growth. However, he noted that it remains to be seen whether this momentum will sustain beyond the festive season.

Vijayakumar also highlighted that despite the market’s steady rise, fresh record highs have been elusive due to continued selling by foreign institutional investors (FIIs). For markets to break out sustainably, he said, a shift in FII strategy will be crucial, which in turn depends on consistent improvement in earnings growth—something he expects to materialise from Q3 onward.

In the current setup, Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, advised traders to adopt a selective buy-on-dips approach, especially when using leverage. She suggested maintaining tight trailing stop-losses and booking partial profits to manage risk. According to her, fresh long positions are suitable only above 26,100, while close attention to technical levels and global cues remains essential.

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