Indian markets started the week on a strong note, with benchmarks snapping three-day losing streak, helping Nifty to end above 25,550 led by buying seen in the IT, metal, pharma names.
Amid mixed global cues, the market opened flat but buying in IT stocks helped Nifty to test day's high of 25,653.45, however, mid-session profit booking erased some of the intraday gains.
At close, the Sensex was up 319.07 points or 0.38 percent at 83,535.35, and the Nifty was up 82.00 points or 0.32 percent at 25,574.30. About 1,787 shares advanced, 2,183 shares declined, and 132 shares were unchanged.
Broader indices ended mixed with BSE Midcap index rising 0.6 percent, while smallcap index falling 0.4 percent.
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Except media (down 1%), all other sectoral indices ended in the green with IT index up 1.6 percent, pharma index up nearly 1 percent, metal index up 0.6 percent.
Infosys, HCL Technologies, Grasim Industries, Bajaj Finance, Wipro were among major gainers on the Nifty, while losers were Trent, Apollo Hospitals, Max Healthcare, Power Grid and Tata Consumer.
Also Read: Infosys buyback: Should you participate or skip it this time?
In stock-specific action, FSN E-Commerce Ventures shares gain 5% after Q2 consolidated profit jumps 243%, Trent shares slipped 7% despite better Q2 earnings, Schneider Electric Infrastructure share price declined 6% post Q2 earnings, Global Health shares slipped 5% after Q2 profit increases, Neuland Laboratories share price 52-week high after Q2 profit surges 195%.
Swiggy shares fell 3% on funds raising plan, Hindustan Aeronautics share price rose 3% post agreement with General Electric Company, USA, NALCO share price rose nearly 10% after strong Q2 earnings.
More than 180 stocks touched their 52-week high on the BSE, including HBL Engineering, NALCO, Torrent Pharma, CCL Products, BHEL, SAIL, Usha Martin, Laurus Labs, Neuland Lab, Asian Paints, Bank of India, AU Small Finance Bank, Shriram Finance, UPL, Canara Bank, IOC, SBI Life Insurance, L&T Finance, Chennai Petroleum, Paytm. Click to View More
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Lenskart shares ended with marginal gains after making a weak stock market debut on the stock exchanges at 3 percent discount from its IPO price.
Outlook for November 11
Ajit Mishra – SVP, Research, Religare Broking
Markets began the week on a positive note amid optimistic global cues. Following a firm start, the Nifty built on early momentum, supported by strength in select heavyweights across sectors. However, a pullback in the final hour trimmed part of the gains, and the index eventually settled at 25,574.35. Sector-wise, a rebound in IT and pharma, coupled with strength in metal and energy stocks fueled the up move, whereas realty and FMCG ended slightly lower. The broader indices moved largely in tandem, wherein midcap and smallcap indices advanced in the range of 0.47%–0.35% respectively.
The move was supported by improved global sentiment, as progress toward ending the U.S. government shutdown lifted investor confidence. Moreover, FIIs turning net buyers after six consecutive sessions of selling, along with global brokerage Goldman Sachs upgrading India to 'Overweight' from 'Neutral', further added to the positive sentiment.
Nifty registered a close tag below its 20-day EMA i.e. around 25587, which does not favour bulls. Technically, as long as the index holds above the 25,300 mark, a phase of consolidation at current levels cannot be ruled out. However, a decisive breach below this support could trigger profit-taking, dragging the index towards the 25,150–25,050 zone. On the upside, a sustained move above 25,600 would be essential for a further rally towards the 25,800–26,000 region. Participants are advised to adopt a stock-specific approach, accumulate quality stocks on dips, and keep selective shorts as a hedge.
Abhinav Tiwari, Research Analyst at Bonanza
Today, the Indian markets bounced back strongly on Monday, ending a three day losing streak with broad buying across most sectors. The Sensex jumped 319 points to 83,535, and the Nifty 50 gained 82 points to close at 25,574, a clear turnaround after recent weakness.
The rebound came after renewed optimism over a possible end to the 40 day US government shutdown. Over the weekend, the US Senate advanced a funding proposal with bipartisan support, raising hopes that the deadlock might soon end. This improved sentiment across global markets like Japan’s Nikkei rose 1.3%, Hong Kong’s Hang Seng gained 1.6%, and South Korea’s Kospi jumped 3%. Indian equities followed suit, supported by stronger global cues.
IT stocks led the rally, with the Nifty IT index climbing 1.62% as shares of Infosys, TCS, HCL Tech, and Wipro rose up to 2.5%. Banking and metal stocks also posted healthy gains, while overall market breadth stayed positive.
Key drivers of the rally are hopes of a US government shutdown resolution lifted global risk sentiment, strong foreign inflows, with FIIs buying ₹4,581 crore worth of equities on November 7, and Solid Q2 results from select companies boosted confidence.
We expect some consolidation in the near term as we wait for key macro data such as CPI on November 12, M3 money supply, and WPI on November 14. The focus remains on large cap stocks with steady earnings momentum, particularly in IT, banking, and pharma. Results from companies like Bajaj Finance, ONGC, and Vodafone Idea will likely guide the next market move.
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