Sensex flat, Nifty tests 25,000 as investors eye fresh cues; all eyes on US retail inflation print

Autos extended losses, IT stocks came under pressure

Indian benchmark indices Sensex and Nifty continued to hover in positive territory with marginal gains during the afternoon session on September 11, as investors adopted a wait-and-watch approach in the absence of strong triggers. Market sentiment is cautious, with traders eyeing the upcoming US retail inflation data after softer-than-expected wholesale prices raised hopes of a dovish tilt in the Federal Reserve’s policy stance.

Around noon, the Sensex rose 84.98 points, or 0.10 percent, to 81,510.13, while the Nifty inched up 21.45 points, or 0.09 percent, to 24,994.55. Market breadth was tilted in favor of bulls with 2,045 shares advancing, 1,527 declining, and 154 remaining unchanged.

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India VIX, which gauges near-term market volatility, stayed at comfortable levels, indicating no immediate sign of nervousness. The session also coincided with the weekly expiry of BSE Sensex derivatives contracts.

Broader markets painted a mixed picture, with smallcaps outperforming midcaps. Sectorally, the Nifty Oil & Gas and Nifty PSU Bank indices managed to hold onto gains of about one percent each.

On the flip side, the Nifty Auto index extended its losing streak to a fourth consecutive session, as profit-taking continued after the recent GST-driven surge.

The Nifty IT index too slipped into the red after two sessions of gains, dragged by selling in heavyweights such as Infosys, Wipro, Tech Mahindra, Persistent Systems, and LTIMindtree.

Adding to the cautious mood, investors also tracked developments in India-US trade talks. Sentiment had firmed up earlier on expectations of a softer stance from Washington, but clarity is still awaited on whether the proposed 50 percent tariff threshold will see a reduction.

On the technical front, Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, advised traders to tread carefully amid ongoing uncertainty.

“Booking partial profits on rallies and using tight trailing stop-losses remain prudent. Fresh long positions should be considered only if Nifty sustains above the 25,000 mark,” she said.

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